Treasury Is Criticized Over TARP

The special inspector general overseeing the $700 billion financial-sector bailout said the Treasury Department isn't disclosing enough information about how taxpayer money is being spent.

In prepared testimony for a Tuesday hearing of the House Committee on Oversight and Government Reform, Special Inspector General Neil Barofsky said the Treasury has rejected several of his recommendations for more transparency on its part.

Mr. Barofsky also said the Treasury has declined to require bailout recipients to explain what they are doing with their government funds.

Mr. Barofsky estimates the government's potential exposure to programs aimed at resolving the financial crisis at $23.7 trillion.

To get to that figure, Mr. Barofsky combined direct spending with all the government guarantees and programs and assumes the "gross exposure" the government could face if all the programs were tapped to their fullest potential. His report says "these numbers may have some overlap, and have not been evaluated to provide an estimate of likely net costs to the taxpayer."
...By MEENA THIRUVENGADAM - http://online.wsj.com/article/SB124810729729665611.html