Podcast Interview with Inspector General for TARP: Treasury Department Is Not Being Transparent
EmailABC News' Jake Tapper and Huma Khan report:
On this week’s ABC News Shuffle podcast, we spoke to Neil Barofsky, Special Inspector General for the Troubled Asset Relief Program (TARP), who just this week released a report on the whopping potential federal obligation of the bailout and other programs to jumpstart the economy.
You can download the podcast on iTunes or listen to it HERE.
Barofsky told us that the Treasury Department “is not being transparent with respect to the TARP,” the $700 billion in funds (and more) the government is using as loans and bailouts to help stabilize the financial markets. “They’ve failed to adopt some very basic recommendations we’ve had toward transparency,” he said.
Called the “SIGTARP,” Barofsky appeared before Congress this week and told them that the government’s commitment to fix the financial system could potentially reach $23.7 trillion, and criticized the Treasury Department for calling his team’s estimate “inflated.”
“I think that the Treasury Department ought to read the report before they make comments, at least the spokesperson’s office,” Barofsky said. “Our methodology is laid out in black and white in the report. … As far as the numbers being inflated, where do you think we got the numbers from? We got it from the Treasury Department, we got it from the Federal Reserve. … If these numbers are inflated, it’s because they inflated them when they put them out in the public, not because of us.”
The inspector general defended the numbers outlined in his report, saying that all his team has done is to “gather the 50 programs, put them in one place, and told the American people what the government has said about the maximum of each of these programs.”
“Perhaps their criticism is that we dare to do math,” he said. He added that his team tried to convince the Treasury that they were wrong, and that recipients should be required to report on how they use the federal funds, and those should be shown to the American people so that they know it’s “not being thrown into a black hole.”
The government currently has about 50 different programs to fix the economy. Those programs include bailing out banks and automakers, and improving the housing market. Barofsky said the way his team came up with that figure is by looking at three different figures for each program.
“One, how much money is currently outstanding under the program. Two, what the high water mark has been since the inception of the bailout and then three, what is the total amount the federal government has said they’re willing to commit to each program. And at the end, we add them all up,” he explained. “That’s where the 23.7 trillion number comes from. It’s what the federal government has said would be the maximum number for each of the approximately 50 programs.”
Barofsky said “this recent attack on my report is really, in many ways, an attack on basic transparency – of not wanting the American people in a certain way to see exactly what’s going on in their government as included in our report.” He said the Treasury Department “with respect to this program, they’ve not met their claims that this is going to be ‘unprecedented transparency,’” as President Obama suggested there would be.
We also spoke to Mr. Barofsky about whether taxpayers were misguided, on his independence being challenged by the Treasury and the personal toll of his job.
You can download the podcast on iTunes or listen to it HERE.
The podcast was produced by Huma Khan, with special thanks to Matt Jaffe.
– Jake Tapper and Huma Khan
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It sounds like Neil Barofsky may be invited to the White House for an informal “chat” like Doug Elmendorf was a day ago.
Posted by: WWTP? | July 22, 2009, 1:38 pm 1:38 pm
Thanks for this Jake. Good to hear people in their own words.
Posted by: Traffic Cop Timmy | July 22, 2009, 1:42 pm 1:42 pm
Uhhhhhhhhhh, what else is new?
Posted by: The tax man cometh | July 22, 2009, 1:43 pm 1:43 pm
“Perhaps their criticism is that we dare to do math…”
Outstanding.
Thanks for covering this guy while he lasts, Jake. He obviously isn’t long for the IG world, seeing as he has the temerity to criticize something barky’s minions are mishandling.
Posted by: 2Brixshy | July 22, 2009, 1:47 pm 1:47 pm
He will be fired in 3…2…1…
Posted by: hmn | July 22, 2009, 1:56 pm 1:56 pm
Change you can believe in, does anyone have change for 23 trillion? I left my wallet at the DNC headquarters. Guess I’ll never see that again 111
Posted by: hkdakota | July 22, 2009, 2:22 pm 2:22 pm
Should be expected from BO and the dems.
Posted by: rider1a | July 22, 2009, 2:25 pm 2:25 pm
I hope he has another job lined up. obama will fire him for sure. He didn’t sayb what obama wanted to hear
Posted by: Lee S | July 22, 2009, 2:35 pm 2:35 pm
“Should be expected from BO and the dems.”
This is actually our SECOND highly corrupt, anti-Constitutional administration in a row, for those keeping score. Obama has provided NONE of the “Change” he promised from the Bush administration. More of the same old corruption, secrecy and lies.
Thank God for the few people like Jake Tapper who are actually reporting what is going on rather than slavering over drivel like Michelle’s supposed fashion icon status and Barack’s little baseball and basketball sideshows. Enough with the distractions and excuses! Let’s ALL look at what’s really going on.
Posted by: paul | July 22, 2009, 2:42 pm 2:42 pm
Repubs and Dems knew this all along, as did most of the American public.
1) There’s too much quid pro quo involved
2) Campaign donations and lobbysist dollasr and perks are heavily involved
Posted by: Cereallover196 | July 22, 2009, 2:53 pm 2:53 pm
Nice work Jake. The bookies in England have the odds at 10,000 to 1 that Mr. Barofsky will last a week. Big, bad Chicago machine.
Posted by: afloatinasea | July 22, 2009, 2:54 pm 2:54 pm
So when do we officially get to start calling Barry a liar and crook? After all we were already buried before he took office and the reason he got so many votes was due mostly to his “campaign promises”. He has continued with the same ol’ garbage of bury them in bulsh!t and they won’t see it coming.How about his “healthcare policy” he wants a rush job put on the vote… even BEFORE it can be entirely read and understood. The CBO has already scored it as a failure…..
Posted by: bob | July 22, 2009, 2:57 pm 2:57 pm
Oh my god, not transparent!!!!! What a surprise.
Posted by: Lizzie | July 22, 2009, 2:58 pm 2:58 pm
“For a long time now there’s been too much secrecy in this city. Transparency and rule of law will be the touchstones of this presidency.” – Barack Obama, January 22, 2009
Posted by: Stacey | July 22, 2009, 3:00 pm 3:00 pm
Transparency is a political illusion. There has never been, and never will be, an administration that will be transparent about how they run the government.
Obama is absolutely no different in that regard. That is not the only promise he has broken, by any means. Just more campaign rhetoric, by a politician/actor on a stage.
Posted by: Rick McDaniel | July 22, 2009, 3:01 pm 3:01 pm
por Mr. Barofsky See ya bye. You might ask if you can keep your health insurance.
Posted by: mj | July 22, 2009, 3:29 pm 3:29 pm
Transparency is as laughable as:
1. the net spending cut
2. 5 days internet posting before a bill is signed into law
3. no lobbyists in the Obama administration
4. no new taxes for those making less than $250,000
5. the fierce moral urgency of don’t ask don’t tell
6. detainee policy
ETC, ETC, ETC ….
Posted by: mad | July 22, 2009, 3:33 pm 3:33 pm
get Charlie Rangle and Chris Dodd on this.
Posted by: jamescbuilder | July 22, 2009, 3:39 pm 3:39 pm
The hope and change has turned out to be nothing more than Washington as usual. The disappointment is palpable.
What next?
Posted by: Nel | July 22, 2009, 3:52 pm 3:52 pm
“I think that the Treasury Department ought to read the report before they make comments, at least the spokesperson’s office,” Barofsky said. “Our methodology is laid out in black and white in the report. … As far as the numbers being inflated, where do you think we got the numbers from? We got it from the Treasury Department, we got it from the Federal Reserve. … If these numbers are inflated, it’s because they inflated them when they put them out in the public, not because of us.”
—————————————-
LOL….Mr Barofsky, why would you think this Administration would READ anything?
They pass LAWS without reading them and then tell us all overblown stories about what the laws are going to do.
Obviously the did not read your report, NOT will they!
Posted by: Mike_C | July 22, 2009, 3:54 pm 3:54 pm
G. W. Bush only pushed policies that siphoned public money into the military industrial complex and Big Oil. B. Obama only pushes to siphon the public funds into Big Banks through 1) the Carbon Credits Stock Market and 2) Health Insurance Credits Stock Market. And now, after bundled mortgage debt almost destroyed the global economy, the Wall Street Wizards just announced that they’re going to do the same thing again with corporate debt! America’s only hope is that a person like Ron Paul wins the next election and remains honest afterward. Oh yea, and senators and congressmen really need to have term limits…
Posted by: andyupnorth | July 22, 2009, 3:59 pm 3:59 pm
G. W. Bush only pushed policies that siphoned public money into the military industrial complex and Big Oil. B. Obama only pushes to siphon the public funds into Big Banks through 1) the Carbon Credits Stock Market and 2) Health Insurance Credits Stock Market. And now, after bundled mortgage debt almost destroyed the global economy, the Wall Street Wizards just announced that they’re going to do the same thing again with corporate debt! America’s only hope is that a person like Ron Paul wins the next election and remains honest afterward. Oh yea, and senators and congressmen really need to have term limits…
Posted by: andyupnorth | July 22, 2009, 3:59 pm 3:59 pm
While I disagree with the headline writers use of his report – there is no way that every program will cost or even commit to risk its maximum – he certainly is correct in putting the facts out there. Based on the report, SIGTARP’s efforts have indeed improved transparency at Treasury but as a good watchdog they will not (nor should they) every be satisfied.
For those who forgot over the last 8 years, this is how a healthy government works: Even with the same party sharing control of the Executive and Congressional branches, they are still willing and able to serve as vigorous checks upon the other.
Posted by: jhw539 | July 22, 2009, 4:08 pm 4:08 pm
“He will be fired in 3…2…1…”
Everyone reading take note of this right wing prediction (made by several on the board already). And when Barofsky releases his next report in a few months or years, remember just another example of the right wing’s chicken little exaggerations.
Posted by: jhw539 | July 22, 2009, 4:11 pm 4:11 pm
WE bring up the firing possibility to help him keep his job. The Obama administration retreat when their actions are brought to light. They don’t mind being bullies, they just don’t like getting caught at it.
Posted by: 3... 2... 1... | July 22, 2009, 4:26 pm 4:26 pm
For those who forgot over the last 8 years, this is how a healthy government works: Even with the same party sharing control of the Executive and Congressional branches, they are still willing and able to serve as vigorous checks upon the other.
Posted by: jhw539
————————————–
“willing and able” ???????
Exactly where in this story do you get the impression that Treasury is “willing and able”?
anyway, lets look at the report itself….
“However, Treasury has declined to adopt one of SIGTARP’s most fundamental
recommendations — that Treasury should require imposition of an informational
barrier or “wall” between the PPIF fund managers making investment decisions on
behalf of the PPIF and those employees of the fund management company who
manage non-PPIF funds. Treasury has decided not to impose such a wall in this
instance, despite the fact that such walls have been imposed upon asset managers
in similar contexts in other Government bailout-related programs, including by
Treasury itself in other TARP-related activities, and despite the fact that three of
the nine PPIF managers already must abide by similar walls in their work for those
other programs.
If nothing else, the reputational risk that Treasury and the program could face
if a PPIF manager should generate massive profi ts in its non-PPIF funds as a result of an unfair advantage, even if that advantage is not strictly against the rules, justifi
es the imposition of a wall. Failure to impose a wall, on the other hand, will leave
Treasury vulnerable to an accusation that has already been leveled against it — that
Treasury is using TARP to pick winners and losers and that, by granting certain fi rms
the PPIF manager status, it is benefi tting a chosen few at the expense of the dozens
of fi rms that were rejected, of the market as a whole, and of the American taxpayer.
This reputational risk is not one that can be readily measured in dollars and cents,
but is rather a risk that could put in jeopardy the fragile trust the American people
have in TARP and, by extension, their Government.”
willing & able ?????????
Posted by: Mike_C | July 22, 2009, 4:36 pm 4:36 pm
Barofsky told us that the Treasury Department “is not being transparent with respect to the TARP”
For those who forgot over the last 8 years, this is how a healthy government works
Posted by: jhw539 |
For those who aren’t in the tank for a political party, this is how a corrupt government works.
Posted by: Foghorn Leghorn | July 22, 2009, 4:48 pm 4:48 pm
We now know that the great majority of Mr. Obama’s campaign promises were simply lies. Americans are catching on, and he is in more trouble every day. This is what happens to liars.
Posted by: Fructuoso Solano-Revuelta | July 22, 2009, 5:10 pm 5:10 pm
“For those who aren’t in the tank for a political party, this is how a corrupt government works.”
So the Bush administration was a corrupt government?
Posted by: Ryan C | July 22, 2009, 5:17 pm 5:17 pm
We might as well call Ryan_c the “Riddler” from now on. He seems to only respond to questions with another question involving Bush.
Somehow “we” are supposed to figure out the answers for him, since today with all this top notch news for the Administration, he is so overjoyed his brain has shorted out.
Posted by: Mike_C | July 22, 2009, 5:26 pm 5:26 pm
“For those who aren’t in the tank for a political party, this is how a corrupt government works.”
So the Bush administration was a corrupt government?
Posted by: Ryan C | Jul 22, 2009 5:17:53 PM
___________________
Barofsky is criticizing the transparency of the OBAMA Treasury dept in the administration of TARP and related funds such as AIG.
Barofsky is still there in an independent role which is more than you can say for SIG Amtrak, SIG Americorps, SIG ITC (maybe the WH is going alphabetically) and the plan to give a “promotion” to SIGs and SIG like auditor / regulators at Federal Reserve Board of Governors, Commodity Futures Trading Commission, the National Credit Union Administration, the Securities and Exchange Commission, and the Pension Benefit Guaranty Corp so that they are appointees that is serving subject to the president’s pleasure
Posted by: robertb | July 22, 2009, 5:51 pm 5:51 pm
“So the Bush administration was a corrupt government?” – Ryan C
That’s an easy one – yes! And guess what? So is the Obama administration! Every little bit as much. America needs to wake up and throw these bums out!
Posted by: paul | July 22, 2009, 5:57 pm 5:57 pm
The amount of spending done in the last 9 months is staggering. Congress and Obama are spending this country into the ground. These underinformed politians cannot be bothered adding all of the loans, gifts to the auto industry; loan guarantee programs; 2 failed stimulous packages last year; Obama election favor payback package passed under the name of stimulous have all been shoved down our throats under threat of impending doom and dispair. Hello up there, we are out of money! Take a breath the american people are having buyers remose, we cannot afford any more our this congress and Whitehouse’s great ideas – WE ARE BROKE! NO MORE MONEY!
Posted by: Judy | July 22, 2009, 6:07 pm 6:07 pm
“So the Bush administration was a corrupt government?” – Ryan C
That’s an easy one – yes! And guess what? So is the Obama administration! Every little bit as much. America needs to wake up and throw these bums out!
Posted by: paul |
Agreed.
Posted by: Foghorn Leghorn | July 22, 2009, 8:45 pm 8:45 pm
Mike C, That “riddler” nickname is brilliant, he really does have that bad habit of diverting attention away from the question with “Well Bush did….”
I think ryan is the worst frequent commenter with his juvenile rhetoric of “right wingers lie” when he can’t win an argument. If one chooses not to believe this $23.7 trillion number, we can just look at the $4 trillion that has been spent in the past 9 months as an indicator that $23.7 trillion is not an impossibility.
Posted by: Jason | July 22, 2009, 9:28 pm 9:28 pm
the truth hurts.
Posted by: alan | July 22, 2009, 9:34 pm 9:34 pm
The President did not address the fact that this healthcare plan is going to create more UNEMPLOYMENT in this country because businesses and rich people forced to pay for this plan (and the addtional taxes) will pass the cost onto us the consumer in the form of inflation, layoffs etc. Also what is to stop U.S. Healthcare and these other insurance & private healthcare companies from simply folding and taking the money they have taken from us already and closing up shop (thus denying existing healthcare). The consequences like longer waits for healthcare and procedures which would be needed right away were also not mentioned i.e. they arent going to turn anyone away but so what if they have to wait 6 months to have their appendix removed. Its all just a plan to soak the taxpayer for more money. Money this administration wasted on TARP, money they are going to lose in April 2010 in tax revenues from 10% unemployed people who cant pay their income tax etc.
Posted by: guesswhaturwrong | July 22, 2009, 9:41 pm 9:41 pm
Ok and we are suppose to believe the Mesiah ?? Remember when he came out with catastrophic picture of the economy and the trillion dollars bailout ? The big money wasted and no one to answer where all that money go ?? Does anyone believe on his so called transparency? You are not going to fool us again Obama.
Posted by: Frank | July 22, 2009, 11:04 pm 11:04 pm
I think it’s funny that people forget that TARP was signed by President G.W. Bush in October, BEFORE President Obama was even elected.
Posted by: bwall75 | July 23, 2009, 9:13 am 9:13 am
Uh Oh. Will the chosen one lose faith in this IG also? I hope this guy doesn’t back down. Please keep telling it like it is Mr. Barofsky!
Posted by: wheresmymoney | July 23, 2009, 10:37 am 10:37 am
@ bwall75
Yes, it IS funny how Obama has turned Bush’s $700B commitment (money Obama voted for as a Senator) and turned it into a $23 TRILLION promise that Bush had nothing to do with.
I’m still laughing.
Posted by: vinman | July 25, 2009, 9:52 am 9:52 am
So the United States is bankrupt, correct?
Thank you, Mr. Obama.
Posted by: sally j | July 25, 2009, 10:51 am 10:51 am
So the United States is bankrupt, correct?
Thank you, Mr. Obama.
Posted by: sally j | Jul 25, 2009 10:51:45 AM
========================
after just 6 months right? spare me your lunacy
you know this is the doings of our previous president.
Posted by: Omentum | July 27, 2009, 2:58 pm 2:58 pm
Most of the current federal government obligations were set-up BEFORE Obama took office. Most of these measures were taken to deal with what the BUSH Administration created or failed to regulate.
Since Obama took office, he has spent only $400-billion of the TARP, and about $60-billion of the Stimulus, and succeeded in slowing the economic decline. The rest of what has come to pass under the Obama era has been done by the Federal Reserve (a non-government private bank) which is beyond the President’s power to control. These numbers were available last year, our economy has no clothes, anyone surprised wasn’t paying attention.
I find it difficult to believe that the people taking time to read and comment here were so ignorant that they didn’t notice the $TRILLIONS in emergency loans that the Federal Reserve (a private non-government entity) was giving away, beginning in September 2008. All that money is created out of thin air, and the American Taxpayer is obligated for those loans, essentially the guarantor of last resort. Yet, the FED can make such loans without government oversight.
That is the real outrage. That the FED can make loans in your name, without permission, and while you fight over an insignificant TARP $700-Billion, they sell the country out from under you, in a desperate attempt to shore up a failing economy.
The people commentating here must be shills for the republicans, propagandizing against the new Obama Administration, because no one who understands what has happened over the last eight years, would be so stupid as to blame Obama, who is doing his best to sail a sinking ship.
It is worrisome that Treasury wanted to squash this recent report about our POTENTIAL obligations, but Treasury is full of the guys who got us here in the first place, and they seem to be playing a MARKETING strategy, to keep the public ignorant of the man behind the curtain, because they believe that PUBLIC PERCEPTION is reality, and are afraid of a run on the markets if the common investor (i.e. 401k crowd) knew their money was worthless.
that I only hope that the Whitehouse is smart enough to let the masses finally realize what has happened, and what the potential damage could be if we don’t stop squabbling over who gets rich and begin to work together and create a new economy, with true green, progressive values.
Posted by: Michael Russell | August 6, 2009, 1:29 am 1:29 am