Critics: TARP Has Failed to Halt Foreclosures or Job Losses

House Oversight and Government Reform Committee chairman Henry Waxman (D-Calif.), has sent letters...

House Oversight and Government Reform Committee chairman Henry Waxman (D-Calif.), has sent letters to the heads of nine major U.S. banks getting propped up with billions of taxpayer dollars inquring about executive compensation and bonus plans for this year.

Lawmakers on both sides of the aisle today felt that frustration first-hand. Sen. Bob Corker, R-Tenn., denounced as useless and unclear the testimony from Treasury official Herb Allison, who oversees the bailout program.

"This hearing has not been very useful," Corker told Allison about 45 minutes into the witness' testimony. "Maybe that's just the way it is, but I look forward to the next panel."

The panel's chairman, Sen. Chris Dodd, D-Conn., then noted sarcastically, "But the questions are valuable."

"I associate myself with Sen. Corker's thoughts," said Sen. Judd Gregg, R-N.H.

Allison attempted to beat back the criticisms by arguing that the program had helped avert the collapse of the financial system last fall. It should not, he said, be viewed only through the prism of what financial returns are eventually seen by American taxpayers.

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"It's too early to say how this is going to turn out," he said. "Some areas will probably see better performance than others, but we also have to look at the overall impact of the financial stability program on the American economy, on the banking system, and on the American public in general. I would shudder to think what the situation would be if the Congress and the administrations hadn't taken strong actions to deal with this crisis by, for example, creating the TARP program."

Dodd echoed that assessment, stating that Congress made the right move in enacting the program last October.

"I think we did the right thing and I think history will prove that to be the case," he said.

Watchdog Gene Dodaro of the Government Accountability Office offered a more mixed review.

"It's had some positive impact on the credit markets, but a lot of the programs have very uncertain outcomes at this particular point in time," he said.

Even the recent improvements of the banks – for many an acknowledged success of the program – were questioned today. Warren said the bailout's original purpose – to buy up the toxic assets weighing down banks' balance sheets – was never fulfilled.