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Monday, October 25, 2010

TARP report shows not good for taxpayers

TARP bailouts are far from over, even though Treasury’s ability to invest more money in the program has expired, a new oversight report finds.

The special inspector general for the Troubled Asset Relief Program, Neil Barofsky, has prepared a report outlining problems, including rosy Treasury estimates for the program’s cost to taxpayers.

The report criticizes TARP for failing to save enough struggling homeowners from foreclosure. The program has supported 207,000 permanent mortgage modifications intended to keep people in their homes. But 1.7 million homes have been foreclosed on since January 2009.

“The most specific of TARP’s Main Street goals, “preserving homeownership,” has so far fallen woefully short,” the report said. (Full story here)

The report also hit TARP for failing to increase lending for small businesses, going after the administration’s auto team for advocating to speed the rate of shuttering car dealerships in order to save General Motors.

Republicans said the report shows the administration isn’t being straightforward about the programs costs.

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