Inspector general says TARP needs more oversight


According to a government report, Americans are more exposed to potential losses and the government is more vulnerable to being ripped off thanks to the way the bank bailout has been structured. In fact, Inspector General Neil Barofsky is rather blunt about the Troubled Asset Relief Program (TARP), noting that the program favors private investors and manifests "potential unfairness to the taxpayer."

All isn't gloom and doom in the report, though. Barofsky does praise the Treasury and the Fed for creating some safeguards and suggests several more measures that could protect taxpayers. But the picture he paints isn't pretty. The report is going to show that TARP and other initiatives could carry a price tag of $3 trillion -- yes, that is trillion with a T -- for a program that started with a cost of $700 billion.