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| Version 0 | Version 1 |
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| US 'exposure to crisis $23.7tn' | US 'exposure to crisis $23.7tn' |
| (about 1 hour later) | |
| The total exposure of the US government to the financial crisis could hit $23.7 trillion (£14.3tn), according to a watchdog report. | The total exposure of the US government to the financial crisis could hit $23.7 trillion (£14.3tn), according to a watchdog report. |
| Neil Barofsky, overseeing the Troubled Asset Relief Programme (Tarp), made the estimate in prepared remarks to a House of Representatives committee. | Neil Barofsky, overseeing the Troubled Asset Relief Programme (Tarp), made the estimate in prepared remarks to a House of Representatives committee. |
| The worst-case estimate represents the maximum exposure if all parties offered support requested maximum assistance. | The worst-case estimate represents the maximum exposure if all parties offered support requested maximum assistance. |
| The figure includes all government and Federal Reserve initiatives. | The figure includes all government and Federal Reserve initiatives. |
| 'Repeated failure' | |
| "From programmes involving large capital infusions into hundreds of financial institutions, to a mortgage modification programme, to public-private partnerships using tens of billions of taxpayer dollars to purchase 'toxic' assets from banks, Tarp has evolved into a programme of unprecedented scope, scale and complexity," said Mr Barofsky, special inspector general of Tarp. | "From programmes involving large capital infusions into hundreds of financial institutions, to a mortgage modification programme, to public-private partnerships using tens of billions of taxpayer dollars to purchase 'toxic' assets from banks, Tarp has evolved into a programme of unprecedented scope, scale and complexity," said Mr Barofsky, special inspector general of Tarp. |
| However, he said the programme was only part of the wider effort to rescue the US economy. | However, he said the programme was only part of the wider effort to rescue the US economy. |
| "As massive and important as Tarp is on its own, it is just one part of a much broader federal government effort to stabilise and support the financial system. | "As massive and important as Tarp is on its own, it is just one part of a much broader federal government effort to stabilise and support the financial system. |
| "The total potential federal government support could reach $23.7tn," he added. | "The total potential federal government support could reach $23.7tn," he added. |
| Mr Barofsky said any judgement on the effectiveness of Tarp should be made in the context of the government's overall efforts to revive the economy. | Mr Barofsky said any judgement on the effectiveness of Tarp should be made in the context of the government's overall efforts to revive the economy. |
| He also criticised the government for "repeatedly" failing to adopt recommendations from his office regarding transparency. | He also criticised the government for "repeatedly" failing to adopt recommendations from his office regarding transparency. |