Barofsky: 'TARP will Almost Certainly Bring Loss to U.S.'

Barofsky: ‘TARP will Almost Certainly Bring Loss to U.S.’…Billions

November 13, 2009 By: M.J. Harris Category: Business

Topics: AIG, bailouts, link, neil barofsky, tarp

Neil Barofsky, the special inspector general for the $700 billion U.S. financial-industry bailout, said the program will “almost certainly” result in a loss to taxpayers.

“We need to temper or be realistic about our expectations, a dollar-for-dollar return is just highly unrealistic,” he said yesterday at the Bloomberg Washington Summit. “It’s almost certainly going to be a loss.”

“Tens of billions of dollars are likely to be lost on the automotive bailout,” Barofsky said. In addition, some banks that received TARP money are failing, so the aid they received will be wiped out.