Inspectors General

The Watchdog Bites: SIGTARP Report Slams Administration for ‘Manipulated’ Data

By on 10.25.10 | 3:54PM

In a scathing 338-page report released today, a federal watchdog exposes the failure of the 2008 Troubled Asset Relief Program (TARP) bailout and suggests Treasury Department officials engaged in a politically motivated attempt to hide losses at bankrupt insurance giant AIG with "manipulated" data.

"Treasury should have disclosed that it had changed its valuation methodology and should have published a side-by-side comparison of its new numbers with what the projected losses would be under the auditor-approved methodology that Treasury had used previously and will use in the future," says the report from the office of Neil Barofsky, special inspector general known as SIGTARP. "This conduct has left the Treasury vulnerable to charges it has manipulated its methodology for calculating losses to present two different numbers depending on its audience."