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Econwatch
October 21, 2009 7:45 AM

TARP Watchdog: Repayment "Unrealistic"

By
Daniel Carty
Topics
Bailouts
(CBS)
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."




Add a Comment See all 37 Comments
by cy4466 October 21, 2009 3:20 PM EDT
Our current leaders:

-Print money in the moring

-Stuff suit cases before lunch

-Buy gold in the afternoon

-Fill safe's with gold in the evening
Reply to this comment
by lvdragonlady-2009 October 21, 2009 2:41 PM EDT
BULL!!!
IF the companies that got the money PAID it back BEFORE giving out bonuses that were NOT earned, it would not be a problem at all.
Reply to this comment
by thesevenveils October 21, 2009 3:04 PM EDT
This is complete Bull! The very financial companies that were bailed out by our tax money dolled out more bonuses last year than they did the year before. It was as if they expected then that they'd never have to pay off their loans.

The financial system collapsed under the watch of Ronald Regan and the Public payed dearly. And again under GW Bush. And both times the banking companies got a gift, not a loan.

Now who has who in their front pocket?
by kbibbee October 21, 2009 2:36 PM EDT
"There's been some successes in as far as pulling us back from the brink of a financial collapse."

Barofsky conceeds there is this one, minor little success. It is like he mentions this under his breath. This is one of the major understatements of... forever!!! Financial collapse is not some a barely worth mentioning downside if TARP had not been passed. No one knows how bad the US and world financial crisis could have gotten. The crisis most likely would have gotten much worse than it did. It may have gotten as bad or worse than during the great depression. Our economy was tanking and no one knew for sure where it was going to stop. There was no other rescue plan besides TARP, other than let nature run its course which may have turned us into a third world country by now. Could we afford to take that chance? Should we have left survival to the fittest because 100% of TARP rescue funding might not have been returned?
Reply to this comment
by raydernation October 21, 2009 1:50 PM EDT
This Inspector General should be fired for saying something like that. I believe all that money will and should be recovered. Why not?
Reply to this comment
by jxknowles October 21, 2009 2:24 PM EDT
by raydernation I believe all that money will and should be recovered.

Absolutely. You couldn't be more correct. Banks can give out bonuses after they pay back the TARP loans with 5% interest. Unless the bank collapsed or went bankrupt I expect to see the money returned, no matter how long it takes.

TARP is actually a good program for taxpayers, if the participants honor the agreements they signed. Extend it to small community banks who actually fund the small businesses we depend on for jobs and state/local tax income.
by fedup12 October 21, 2009 1:46 PM EDT
Wait i want a bonus for doing a c#$%%& job.
Reply to this comment
by Constitionalist October 21, 2009 2:08 PM EDT
I just took a massive dump, more productive than most of these guys have done in a decade. I want my bonus now. Tax free, of course.
by docpeter1953 October 21, 2009 1:06 PM EDT
From the above article, "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."
_______________________

This is because the $$ was given to elite CEOs who only look out to pocket the "Retention bonuses" for themselves and their friends. Nothing has really changed. Still the same bunch of worthless crooks that helped perpetuate the mess patting themselves on the back for the extra income their company got and they can bonus for it.
Reply to this comment
by TheDragonfighter October 21, 2009 12:58 PM EDT
We can't expect them to repay all that was borrowed or, to restart lending and help out homeowners (a couple of primary goals of TARP) but, they can give rediculous bonuses to the execs. that caused the problem. The oversight inspector general must be a part of the system that caused the problem. Either that or he, like the corporations and their executives have overestimated the stupidity and gullability of the tax paying public whose money financed the bail out. It's time for a new oversight system and inspector general.
Reply to this comment
by Constitionalist October 21, 2009 1:52 PM EDT
I vote Smith and Wesson for new IG!
by ellensmithee October 21, 2009 12:49 PM EDT
These people are evil.
Reply to this comment
by sjc_1 October 21, 2009 1:46 PM EDT
Bush and Paulson made no provisions for the banks to do the right things with the money. They claim to believe that the bsnks will do the right things with the money and need NO oversight, that would be a government "intrusion" into private business. The banks went out and bought other banks at fire sale prices and gave the executives HUGE bonuses. Management has proven over and over again that you can not trust them to do the right things for the country, but the Republicans keep selling that line anyway.
by ibsteve2u October 21, 2009 12:15 PM EDT
"It would be "unrealistic" for Americans to expect the government to recoup all of the $700 billion..."

lollll...i.e., it has already gone to buy Italian yachts, German luxury automobiles, and villas on the French Riviera.

"Stimulus" spending for Europe, courtesy of America's Wall Street and banking barons.
Reply to this comment
by G-I_Jesus October 21, 2009 10:50 AM EDT
Money For Nothing (Dire Straits)

The goal is to recoup the money from Wall Street but to get the economy going again. Then will the government get their money back from tax revenues.

As for the off-the-wall bonuses to Wall Street executives, it is worth it if Wall Street will accept in exchange that certain financial laws and regulations be changed to protect the economy from nose-diving again.

Now, if we could only do the same thing to the music industry.
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