Earlier this month, everyone was talking about the wild success of the Troubled Asset Relief Program (TARP), with recent reports from the Treasury estimating that it could cost taxpayers in total as little as $50 billion, or less.In an early October report, the Treasury approximated that taxpayers would lose just $5 billion on their investment in American International Group (AIG), a tiny fraction of the $182 billion bailout AIG was originally extended.
But the New York Times reports that according to special inspector general for TARP Neil Barofsky, the Treasury has concealed $40 billion in losses on AIG alone.
The Treasury, apparently, has been using unusual and misleading accounting practices.
“In our view, this is a significant failure in their transparency,” said Barofsky.
The Treasury denies this.
Go to the full story from the New York Times >