Neil Barofsky isn’t making any friends over at Treasury right now, considering he is slamming their changing methodology (without telling the American public) that make the losses at AIG looks significantly less than what they were 6 months ago.
Is anybody surprised? No; didn’t think so. I know I will have died and gone to heaven when the Federal Reserve no longer exists and the big wall street banks aren’t telling our government how it’s going to be anymore.
Treasury Hid A.I.G. Loss, Report Says
The United States Treasury concealed $40 billion in likely taxpayer losses on the bailout of the American International Group earlier this month, when it abandoned its usual method for valuing investments, according to a report by the special inspector general for the Troubled Asset Relief Program.
“In our view, this is a significant failure in their transparency,” said Neil M. Barofsky, the inspector general, in an interview on Monday.
In early October, the Treasury issued a report predicting that the taxpayers would ultimately lose just $5 billion on their investment in A.I.G., a remarkable outcome, since the insurance company was extended $182 billion in taxpayer money in the early months of its rescue. The prediction of a modest loss, widely reported as A.I.G., the Federal Reserve and the Treasury rushed to complete an exit plan, contrasted with an earlier prediction by the Treasury that the taxpayers would lose $45 billion.
And as an added bonus, Neil Cavuto covers the story of the Treasury looking for employees that know their way around the Freedom Of Information Act specifics. How’s that for transparency…? The Judge weighs in.