By MEENA THIRUVENGADAM
WASHINGTON -- Government support aimed at cushioning the effects of the financial crisis in the U.S. could reach $23.7 trillion, a special inspector general overseeing U.S. bailout efforts said in a report to Congress.
In prepared testimony for Tuesday's hearing of the House Committee on Oversight and Government Reform, Special Inspector General Neil Barofsky writes the figure includes spending and commitments for several agencies that have implemented programs aimed at supporting the economy and the U.S. financial system.
"TARP does not function in a vacuum," he wrote, referring to the government's $700 billion Troubled Asset Relief Program -- its most visible effort to counter the financial meltdown.
The committee's ranking member, Darrell Issa (R., Calif.), blasted the figure provided by Mr. Barofsky, saying "If you spent $1 million a day going back to the birth of Christ, that wouldn't even come close to just $1 trillion -- $23.7 trillion is a staggering figure."
Mr. Issa also criticized the Treasury Department for failing to follow certain suggestions made by the bailout watchdog.
"This administration promised an 'unprecedented level' of accountability and oversight, but as this report reveals, they are falling far short of that promise," he said.
A Treasury spokeswoman didn't immediately respond to a request for comments.
Mr. Barofsky in his testimony wrote that Treasury has often rejected his office's recommendations regarding ways to operate programs in a more transparent manner.
"TARP has become a program in which taxpayers (i) are not being told what most of the TARP recipients are doing with their money, (ii) have still not been told how much their substantial investments are worth, and (iii) will not be told the full details of how their money is being invested," his testimony reads.
Mr. Barofsky in his testimony also will provide a breakdown of the government's TARP expenditures, noting Treasury as of June 30 has spent $441 billion of the nearly $700 billion authorized under TARP legislation, a figure that differs from that published by Treasury in a separate report.
Mr. Barofsky is pushing for Treasury to provide regular valuations of a portfolio of assets it has obtained in connection with the TARP "so that taxpayers can get regular updates on the financial performance of their TARP investments."
He said the department hasn't committed to provide such reports more than the once per year required by law.
"Treasury's default position should always be to require more disclosure rather than less and to provide the investors in TARP -- the American taxpayers -- as much information about what is being done with their money as possible," Mr. Barofsky will tell lawmakers.
Write to Meena Thiruvengadam at meena.thiruvengadam@dowjones.com
________________________ ________________________ _______________________
Hey, lets do another Palin thread right?
