"We're afraid that the cost of future bailouts could get so high it could push even the healthy companies under."
He suggested that in future bailouts, the bankers and investors who lent money to a country would have to "share the burden."
The fund is supposed to contribute towards future bailouts of Greece.
He also warns that future bailouts may be necessary.
But many experts expect that taxpayers will eventually be called on to contribute to future bailouts.
But Barofsky is expected to sound a warning about future bailouts.
The country's central bank is considered almost certain to become a lender of last resort in future bailouts.
A major reason was to insure that the United States would not have to bear the brunt of future bailouts.
"Ring fencing" should reduce the frequency of future bailouts.
Republicans demanded that a similar $50 billion fund be removed from the Senate bill because they said it would encourage future bailouts of failed financial companies.