October 25,2010

Grassley: SIGTARP Report Exposes Treasury’s Rosy Scenario for AIG Losses

M E M O R A N D U M

To:    Reporters and Editors
Re:    SIGTARP quarterly report to Congress
Da:    Monday, October 25, 2010

The Special Inspector General for the Troubled Asset Relief Program is issuing a quarterly report to Congress.  Sen. Chuck Grassley, ranking member of the Committee on Finance, was instrumental in ensuring the TARP program had an independent inspector general and has conducted oversight of tax dollar use and repayment capacity.  Earlier this year, Grassley exposed the misleading nature of the General Motors-Treasury Department public relations campaign that claimed the company paid back its $6.7 billion government loan, with interest, ahead of schedule.  In fact, G.M. “repaid” the taxpayers not with the company’s own cash, but with other funds controlled by the Treasury.  The money came from the tax dollars used to purchase G.M. stock.  Grassley made the following comment on the SIGTARP quarterly report to Congress regarding the estimated losses associated with assistance to AIG.

“This is like the GM press release all over again.  It raises the question of whether Administration officials are trying so hard to put a positive spin on program losses that they played fast and loose with the numbers.  You can't change the way you calculate losses to come up with a rosy scenario in October and then go back to the real numbers in November without seriously damaging your credibility with the American people."

The SIGTARP quarterly report to Congress is available here.