TARP Watchdog: Repayment "Unrealistic"
It would be "unrealistic" for Americans to expect the government to recoup all of the $700 billion spent in the last year to prop up a teetering financial system, the bailout's inspector general said Wednesday.
Neil Barofsky, who oversees the federal Troubled Asset Relief Program, said that while TARP funds helped pull the economy back from the brink of collapse, there is "no expectation at all that that money will come back."
Barofsky detailing the program's mixed results. During an appearance on CBS' "The Early Show", he graded the bailout effort as "incomplete"
"There's been some successes in as far as pulling us back from the brink of a financial collapse. But as far as restoring lending, helping homeowners, helping small businesses, that hasn't materialized yet. We'll have to wait and see," he told "Early Show" co-anchor Harry Smith.
One aspect of the program that's appeared to raise the ire of the public and Congress is the lavish bonuses paid out by Wall Street firms aided by taxpayer money. Barofsky called the bonuses a "significant issue" but noted "there's nothing in the legislation to stop them from doing so."
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