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The outgoing Bush administration has told top lawmakers it does not plan to use at least half of the $700 billion bailout fund that Congress approved this fall to aid the financial industry, congressional officials said Monday. The Treasury Department denied the claim, but stopped short of saying the funds would be tapped.
The congressional officials said Treasury Secretary Henry Paulson passed the word over the weekend that he intends to leave $350 billion untouched when the administration leaves office on Jan. 20. That would mean the incoming Obama administration would decide whether and how the funds should be spent.
Within a few hours, Michele Davis, assistant secretary for public affairs, said congressional leaders had been told the administration would not seek the additional funds over the next few days. She said no decision had been made for the balance of the Bush administration's term, which ends on Jan. 20.
The controversy flared at a delicate moment, with the economy likely in a recession, the credit markets not yet recovered from this fall's meltdown and the White House and Democratic-controlled Congress at odds over proposals to bail out the auto industry.
The White House appears reluctant to dip further into the $700 billion bailout fund that Congress approved, yet a public disclosure of its intent could further damage the credit markets and the broader economy As a result, it was unclear whether the administration was deliberately trying to pull back on its weekend message — or whether congressional officials in both parties had misunderstood what they were told.
The congressional officials spoke on condition of anonymity, saying they were not authorized to disclose the developments.
But Davis, in an e-mail, said, "We informed the Congress that there would be no notification this week. We did not go beyond that. The Secretary has no timeline for accessing the second $350 billion."
At the White House, spokesman Tony Fratto said any decision about the use of the remaining $350 billion was up to Paulson.
"He said he's working to continue to design and develop programs, and when it's the right time to use them Treasury will announce it. And if it then makes sense to go to Congress, he'll recommend we request to drawdown the second $350 billion," Fratto said.
Under the bailout legislation that cleared Congress, $250 billion was available immediately, and another $100 billion could be spent without congressional acquiescence.
The remaining $350 billion can be spent only if Congress doesn't disapprove. One official said the administration wanted to avoid a situation in which Republican lawmakers voted against tapping the remaining money that ultimately was cleared for use.
Ironically, when the administration initially sought the bailout measure, Paulson argued for a $700 billion package to be made available at once.
It marked the second reversal on the part of the administration. President George W. Bush, Federal Reserve Chairman Ben Bernanke and Paulson initially told lawmakers the $700 billion was needed to buy troubled assets that banks were carrying on their books.
But last week, Paulson made it official: the government wouldn't use any of the $700 billion to buy the toxic assets.
So far, the Treasury Department has pledged $250 billion for banks in return for partial ownership, a measure designed to encourage the institutions to boost lending and stabilize credit markets.
In addition, the administration has agreed to devote $40 billion to troubled insurer American International Group, leaving $60 billion available for additional bailout efforts through Jan. 20.
_____
Eds: Associated Press reporters Jeannine Aversa and Ben Feller contributed to this story.
© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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{"commentId":4096815,"authorDomain":"susibv"}
Ok.......first I have to say that this picture makes him look like a scared turtle coming out of it's shell that's at least 1 size too big for it.
Secondly, I think that TARP needs to be scambled to what it all really amounted to.......
TRAP
{"commentId":4096815,"threadId":"421556","contentId":"2121075","authorDomain":"susibv"}
- 2 votes
#1 - Mon Nov 17, 2008 1:33 PM EST{"commentId":4097439,"authorDomain":"socalgal"}
I agree on both!
TRAP would be a good new name for this mess.
{"commentId":4097439,"threadId":"421556","contentId":"2121075","authorDomain":"socalgal"}
- 1 vote
{"commentId":4097480,"authorDomain":"babin"}
Guy in the pic is freaking me out. American Psycho style.
{"commentId":4097480,"threadId":"421556","contentId":"2121075","authorDomain":"babin"}
- 1 vote
{"commentId":4098198,"authorDomain":"susibv"}
The only thing missing is the Psycho theme song. I think all the news media outlets should preface any report having to do with the economy with that song.
{"commentId":4098198,"threadId":"421556","contentId":"2121075","authorDomain":"susibv"}
{"commentId":4098256,"authorDomain":"optimismrachel"}
LOL. It is a trap and he's totally a turtle in that picture.
Well, letting Obama decide how part of the bailout is used is a good thing because, Obama needs to share some on the responsibility. I am already seeing the "blame Bush" pattern starting to take shape. Well then let's start blaming all involved parties. Because Congress has more influence than people give them credit for and it's time to stop playing the blame game and try to see things for what they are.
{"commentId":4098256,"threadId":"421556","contentId":"2121075","authorDomain":"optimismrachel"}
- 2 votes
{"commentId":4098337,"authorDomain":"eric-albert"}
Democracy Now and Afterdowning street have exposed the complicity of the democrats, OBAMA, Reid, and PELOSI, all part of the rot of corporate fascism, corporate imperialism, corporate criminality, unwilling to go after these thieves, crooks, and illegal actions, that Congress itself admitted....yet too cowardly ....like the IRAQ war....like the Vietnam War to ever stand up and do the right thing, except to capitulate, to appease the rich and powerful and the corporate fascist state. Look at these Crimes comitted by both parties, and the rot, CRIMINALS around OBAMA'S SECURITY TRANSTION TEAM
http://www.democracynow.org/2008/11/17/naomi_klein_on_the_bailout_profiteers
http://www.democracynow.org/2008/11/17/obama_taps_ex_cia_officials_tied http://www.democracynow.org/2008/11/17/as_obama_reiterates_call_to_close
http://www.afterdowningstreet.org/node/37707
Obama is part of this criminality, corporate rot, imperial rot. He surrounds himself with war criminals, to advise him, instead of arresting all these thieves.
{"commentId":4098337,"threadId":"421556","contentId":"2121075","authorDomain":"eric-albert"}
- 3 votes
{"commentId":4098353,"authorDomain":"PartysOver"}
{"commentId":4098687,"authorDomain":"JoulesBeef"}
you did see albert where obama wanted a cabinet of rivals?
but he is still he one with the magic pen.
{"commentId":4098687,"threadId":"421556","contentId":"2121075","authorDomain":"JoulesBeef"}
- 1 vote
{"commentId":4099175,"authorDomain":"optimismrachel"}
Pelosi turns my stomach. She's got no limit to the amount of taxpayers money she will spend. Have you ever heard her speak of HONEST cuts in the government to assist with the increasing deficit? No. She has faux compassion she purchases with the money of middle class families. It says, "look I care about social ills". What it does - takes away money that could be stimulating the economy to fund additonal social programs that don't work and don't help the right people.
{"commentId":4099175,"threadId":"421556","contentId":"2121075","authorDomain":"optimismrachel"}
- 3 votes
{"commentId":4099505,"authorDomain":"rdonaldsnyder"}
Yada, yada, yada, blah, blah, blah, bs, bs and more bs.
{"commentId":4099505,"threadId":"421556","contentId":"2121075","authorDomain":"rdonaldsnyder"}
- 1 vote
{"commentId":4101594,"authorDomain":"PartysOver"}
{"commentId":4097378,"authorDomain":"liarloan"}
{"commentId":4097394,"authorDomain":"crashlanding1"}
how about bailing out the auto industry with the condition that 100,000 new jobs are made available in the US (taken from abroad) and the new cars being manufactured are 75% hybrid/ electric or otherwise fuel efficient cars...
seems like a fair trade to me.
{"commentId":4097394,"threadId":"421556","contentId":"2121075","authorDomain":"crashlanding1"}
- 3 votes
#3 - Mon Nov 17, 2008 2:18 PM EST{"commentId":4097473,"authorDomain":"socalgal"}
Crash
That would mean that management would have to actually respond to the wants and needs of the American public. Which currently they do not really care about. All of the Big 3 have gotten into wanting to produce autos they want to sell, not autos the public wants to buy.
{"commentId":4097473,"threadId":"421556","contentId":"2121075","authorDomain":"socalgal"}
- 2 votes
{"commentId":4097508,"authorDomain":"babin"}
I don't think that would help their bottom line...
{"commentId":4097508,"threadId":"421556","contentId":"2121075","authorDomain":"babin"}
- 1 vote
{"commentId":4098622,"authorDomain":"perceptions1"}
Especially when there's NO ONE (average american) LEFT THAT CAN BUY A CAR!!!!
{"commentId":4098622,"threadId":"421556","contentId":"2121075","authorDomain":"perceptions1"}
{"commentId":4098725,"authorDomain":"JoulesBeef"}
i say everyone who gets bailed out shoudl be split into two or more corps.
fi they are too big to fail, lets make them smaller and in doing so, increase the competition in the market, making it healthier.
see had we done this to AIG.
well while AIG1 was going on a party.
AIG2 might say "lets forgot the parties and use this money to stake out a better claim in this market"
shouldnt ever give out free money, always make them do something for it.. anything.
{"commentId":4098725,"threadId":"421556","contentId":"2121075","authorDomain":"JoulesBeef"}
- 1 vote
{"commentId":4099280,"authorDomain":"optimismrachel"}
Darn right no one can afford a car. And no one can afford the damage people inflict on their cars. More and more people hit and run. Our car alone has had 7 hit and runs in 2008. Most commonly at grocery stores. We've tried parking far out but someone always ends up near us. Our car is so damaged it's worth pretty much nothing. A garage ripped us off by doing faulty body work. They used a weird screwing device to pull dents out then told us we would have to have our holes patched. After they charged us $300. No one seems to care about average person being ripped off by a-holes. It's like Americans are in it for themselves and they don't care how much it impairs their victims. Sometimes I walk by cars of smug people and it's so tempting to scratch them. (Of course I don't) It's hard not to be bitter. But people like me who try and be honest and kind are getting screwed.
Word to the wise. Be mean. No one is going to treat you with any respect until the economy improves. I can't wait to buy another car. But thanks to seven pieces of scum, that may not happen for years. Even though we could afford a car note. Car industry? You really think I care about THEM?
{"commentId":4099280,"threadId":"421556","contentId":"2121075","authorDomain":"optimismrachel"}
- 1 vote
{"commentId":4097911,"authorDomain":"celiaarm"}
All right! Good news! Paulson is dodging the bullet as he knows what he has done so far hasn't worked.
Let the new congress and POTUS handle it.
{"commentId":4097911,"threadId":"421556","contentId":"2121075","authorDomain":"celiaarm"}
#4 - Mon Nov 17, 2008 2:57 PM EST{"commentId":4097973,"authorDomain":"rdonaldsnyder"}
Actually Paulson has done what he intended to do, funnel taxpayer money to fat cat's on Wall Street for them to hoard to make their bottom line look better. The fact that this also screws over the American people is just icing on his and their's cake.
{"commentId":4097973,"threadId":"421556","contentId":"2121075","authorDomain":"rdonaldsnyder"}
- 1 vote
{"commentId":4098690,"authorDomain":"perceptions1"}
Exactly Donald!
I wonder when will these morons figure out that at some point, after they (Wall street FatCats, Shareholders) sqeeze the average American taxpayer dollar till the F*cking EAGLE screams...who's gonna be left to buy their product(s)?
These same companies are now worried about how dismal this holiday sales season is gonna look...they need to be worried about the next fiscal year...and the year after that...and so on.
They're so smart...they're STUPID!
{"commentId":4098690,"threadId":"421556","contentId":"2121075","authorDomain":"perceptions1"}
- 1 vote
{"commentId":4098757,"authorDomain":"JoulesBeef"}
lol basically many banks have refused,.
plus everyone is calling for paulsens head as none of this has been transparrent.
Oen thing people forget is we spent about 300 billion with a big B bailing out companies before the big bailout began.
so he is really just not goignt o use 1/3 instead of half and mostly purely for political reasons.
{"commentId":4098757,"threadId":"421556","contentId":"2121075","authorDomain":"JoulesBeef"}
- 1 vote
{"commentId":4099574,"authorDomain":"rdonaldsnyder"}
The big mistake about this bailout was expecting a republican administration and "justice" department to actually force the investment banks and mortgage companies to use the money for what it was intended to be used for, to bring relief to real Americans. I hope that the new Attorney General under the Obama administration starts handing out some long prison sentences and that they serve that time in REAL prisons. No more "Club Fed" prison sentences for these crimes!
{"commentId":4099574,"threadId":"421556","contentId":"2121075","authorDomain":"rdonaldsnyder"}
- 3 votes
{"commentId":4097944,"authorDomain":"rdonaldsnyder"}
If the republican congressmen and senators block a bailout of the big three automakers and let them collapse, then it will turn Bush's recession into the worst depression since the 1930's. I just hope that the one in six Americans whose jobs are tied to the auto industry and who'll lose their jobs or otherwise suffer because of it will remember the the people who did it to them. It doesn't matter if anyone can "prove" it's the auto industry's own fault, they'll blame the GOP. It's human nature to blame the party that screwed you out of a job strictly because of ideology.
{"commentId":4097944,"threadId":"421556","contentId":"2121075","authorDomain":"rdonaldsnyder"}
- 2 votes
#5 - Mon Nov 17, 2008 2:59 PM EST{"commentId":4097977,"authorDomain":"kakael"}
on saturday bush said nationally that the world is facing a global meltdown...at a special hearing a couple weeks ago kashkari related to sen dobbs...that the treasury would be needing more of the bailout money...and now all of a sudden it has been leaked treasury isn't going to use anymore of the money...that makes me wonder what in the sam hill is going on over there?...bush, paulson, kashkari, care to answer that question?...
{"commentId":4097977,"threadId":"421556","contentId":"2121075","authorDomain":"kakael"}
- 2 votes
#6 - Mon Nov 17, 2008 3:02 PM EST{"commentId":4098035,"authorDomain":"rdonaldsnyder"}
They won't answer until their cut of the money is safely tucked away in untraceable offshore bank accounts.
{"commentId":4098035,"threadId":"421556","contentId":"2121075","authorDomain":"rdonaldsnyder"}
- 3 votes
{"commentId":4098779,"authorDomain":"JoulesBeef"}
wasnt it amazing on how vital this was.. if it didnt pass without peopel reading it the entire world would go to crap and now they are barely using it and the world is goign to crap.
{"commentId":4098779,"threadId":"421556","contentId":"2121075","authorDomain":"JoulesBeef"}
- 2 votes
{"commentId":4098414,"authorDomain":"joeesposito"}
I don't know if anyone caught the hearing on CSPAN a couple days ago, where Kucinich, Cummings and another guy (sorry, forgot his name) drilled Kashkari about how the money was being spent. They asked some hard questions and you could tell Kashkari was rattled and couldn't give a straight answer if his life depended on it. It was nice to see some of our elected officials asking the hard questions that most of us are asking.. nay, demanding.
{"commentId":4098414,"threadId":"421556","contentId":"2121075","authorDomain":"joeesposito"}
- 4 votes
#7 - Mon Nov 17, 2008 3:34 PM EST{"commentId":4098710,"authorDomain":"kakael"}
yep i watched that joe...the other rep was issa...did you see the part where kuncinich asked kashkari did he want to take the 5th on a question he stumbled around trying to answer...and kuncinich was dead serious...
{"commentId":4098710,"threadId":"421556","contentId":"2121075","authorDomain":"kakael"}
- 3 votes
{"commentId":4098531,"authorDomain":"topshelfstuff"}
IMHO, the big move, acted out by Bernanke & Paulson, was never about any emergency need for $700 Billion. It was a POWER GRAB
{"commentId":4098531,"threadId":"421556","contentId":"2121075","authorDomain":"topshelfstuff"}
#8 - Mon Nov 17, 2008 3:44 PM EST{"commentId":4098804,"authorDomain":"JoulesBeef"}
well i agree uit was a power grab and you know they asked for these powers back in 2003 i think. But the meltdown was real.. bu just like 9/11 they took advantage of a situation to pasa a bunch of stuff they have had trouble passing over the years.
{"commentId":4098804,"threadId":"421556","contentId":"2121075","authorDomain":"JoulesBeef"}
- 2 votes
{"commentId":4099185,"authorDomain":"leonardcharles"}
Not sure when it was asked for but here is some good reading.
One Hundred Tenth Congress of the United States of America in the second session on January 3rd 2008 reads as follows.
The purposes of this Act are—
(1) to immediately provide authority and facilities that the Secretary of the Treasury can use to restore liquidity and stability to the financial system of the United States;
(2) to ensure that such authority and such facilities are used in a manner that—
(A) protects home values, college funds, retirement accounts, and life savings;
(B) preserves homeownership and promotes jobs and economic growth;
(C) maximizes overall returns to the taxpayers of the United States; and
(D) provides public accountability for the exercise of such authority.
SEC. 101. PURCHASES OF TROUBLED ASSETS.
(a) OFFICES; AUTHORITY.—
(1) AUTHORITY.—The Secretary is authorized to establish the Troubled Asset Relief Program (or ‘‘TARP’’) to purchase, and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditionsas are determined by the Secretary, and in accordance with this Act and the policies and procedures developed and.....(goes on to outline)
published by the Secretary
{"commentId":4099185,"threadId":"421556","contentId":"2121075","authorDomain":"leonardcharles"}
{"commentId":4100706,"authorDomain":"topshelfstuff"}
"""""But the meltdown was real""""
sure it was, but all by INTENT---Planned that way
{"commentId":4100706,"threadId":"421556","contentId":"2121075","authorDomain":"topshelfstuff"}
- 2 votes
#9 - Mon Nov 17, 2008 6:32 PM EST{"canLink":false,"threadId":"421556","isPrivate":false}
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