First, the potential liability of the TARP program is much higher than originally anticipated. Congress has authorized $643 billion for TARP (of which only $441 billion has been spent). But when you add in the liability assumed for the "toxic assets," the total taxpayer liability for the program in a worst case scenario is $23.7 TRILLION. Pretty scary.
Second, Mr. Barofsky complained that his recommendations for providing transparency for TARP are being ignored. Four of these ignored recommendations are:
- Require TARP money recipients to report on what the money was actually used for.
- Treasury should report regularly on the value of its portfolio of TARP assets
- Disclose the identity of defaulting TARP borrowers
- Disclose all trading activity of TARP assets.