TARP Watchdog Criticizes Feds' Bailout Statements

Law360, New York (October 5, 2009, 3:58 PM EDT) -- Government officials may have created “unrealistic expectations” for their initial $125 billion bailout of the country's nine largest financial institutions last year by publicly overstating the recipient banks' health, according to the special inspector general of the Troubled Asset Relief Program.

A report released Monday by TARP Special Inspector General Neil M. Barofsky said that initial TARP investments made in “healthy” financial giants such as Bank of America NA and Goldman Sachs in October 2008 — which came under legal and economic scrutiny when promised lending...
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