Inspector General: U.S. TARP Could Cost $24 Trillion

After the financial collapse, the United States could see costs of $24 trillion for the financial bailouts, according to inspector general Neil Barofsky.

When the initial bailout of October came into view, we were told by the Bush administration that the bailouts would only be $700 billion for the Troubled Asset Relief Program. After Pres. Obama’s inauguration, we were told his stimulus package would cost $787 billion. Now, after a report released by the watchdog who oversees the federal government financial bailouts, it seems the entire bailouts will exceed $24 trillion. In lighter terms, the bailouts will cost $80,000 for every American citizen. The report that has come from special inspector general Neil Barofsky, who has criticized the Treasury Department of not adopting the new recommendations that would force the government financial salvage to be more accountable and transparent. In the report, it shows that some steps have been taken by the treasury however; it also states that it has not taken the proper actions to require all TARP recipients to report on the funds they receive. Commitment to the financial industry is a guaranteed $4.7 trillion since 2007 during inceptions by the Federal Reserve and both administrations of former President George W. Bush and current President Barack Obama. Mr. Barofsky will testify to the House Oversight and Government Reform Committee and in a prepared statement he says, “The very credibility of TARP (and thus in large measure its chance of success) depends on whether Treasury will commit, indeed as in word, to operate TARP with the highest degree of transparency possible.”