Neil Barofsky, the inspector general for the Troubled Asset Relief Program has criticised US Treasury officials for making optimistic statements last September, at the height of the financial crisis. The US Treasury misled the public over the health of struggling Wall Street banks receiving emergency funds at the height of the financial crisis, creating unrealistic expectations and undermining popular trust in bailout efforts, according to an official audit. An inspector general appointed to oversee the US government's banking bailout has singled out president Bush's treasury secretary, Henry Paulson, for painting an excessively rosy picture of the condition of institutions such as Bank of America, Citigroup and Merrill Lynch when the government pumped $125bn (
