Obama asks for remaining $350B in financial bailout
President-elect Barack Obama has asked President Bush and the leaders of Congress to release the remaining $350 billion in the so-called financial bailout package so that it's ready to use when he takes office next week.
The Associated Press notes that:
The request would give Obama, who takes office Jan. 20, not only the opportunity to get quick access to the money, but also to change the program's goals and conditions. The Bush administration's handling of the first $350 billion has come under widespread criticism in Congress and from watchdog organizations.
Obama and his economic team have signaled that he was eager to use the money to help reduce the number of mortgage foreclosures and that he wanted to place greater restrictions on institutions that receive the funds. The move comes as Democrats in the House of Representatives prepare to act on legislation that has some of the same aims.
In a letter to leaders of Congress, incoming National Economic Council director Lawrence Summers says Obama is requesting that the money be released because:
"The American people need to know that going forward our government has the resources to do whatever is necessary to stabilize our financial system and protect our economy from a potential catastrophe. With the first half of the rescue package now committed, President-elect Obama believes the need is imminent and urgent. We cannot afford to wait. read more
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