Bailout cop Barofsky says TARP still not working

Jan. 31, 2010: "NEW YORK (CNNMoney.com) -- The watchdog charged with monitoring the government's $700 billion bailout unleashed one of his harshest criticisms of the program to date, questioning its overall effectiveness.

In his latest quarterly report to Congress, special inspector general Neil Barofsky said that the Troubled Asset Relief Program, or TARP, has failed to boost bank lending as well as halt the spread of foreclosures -- two key aims of the sprawling program."

"Whether these goals can effectively be met through existing TARP programs is very much an open question at this time," Barofsky said in the report.

When Congress enacted TARP, the hope was that injecting capital into hundreds of banks would spur lending and keep the economy from spiraling even deeper into recession.

But since then, lending to both consumers and businesses has continued to decline.  continued

Here's another more dire description of the TARP ripoff and how little if anything it's done in the long run but allow banks to "bank" more cash.

 Watchdog: Bank Bailouts Created More Risk in System:

FOXNews.com - "The problems that led to the last financial crisis have not yet been addressed, and in some cases have grown worse, says Neil Barofsky, the special inspector general for the trouble asset relief program, or TARP. The quarterly report to Congress was released Sunday."  continued

---