Bailout

More about the book

Barofsky provides an insider’s perspective on the mishandling of the $700 billion TARP bailout fund during the Bush and Obama administrations. He reveals how government officials prioritized Wall Street interests over public welfare and effective financial reform. In 2008, Barofsky transitioned from a prosecutor to the special inspector general overseeing bailout spending, only to face hostility from Treasury officials. He details how Treasury Secretary Timothy Geithner and his team collaborated with Wall Street executives to create programs that funneled taxpayer money to banks, allowing them to profit with minimal risk while resisting necessary fraud protections. His investigations exposed severe mismanagement in the bailout of AIG, including the approval of millions in bonuses, and highlighted the Obama administration's failure to address flaws in the homeowner relief program. Despite warnings from watchdogs, anti-fraud measures were rejected, leading to widespread abuses and unnecessary foreclosures. Ultimately, only a fraction of the allocated funds for homeowners was utilized, while trillions supported the financial system. Barofsky’s account illustrates the intense pushback he faced while raising concerns about these failures, revealing the deep entrenchment of Wall Street in the political landscape and the growing risks posed by too-big-to-fail banks.