WASHINGTON, Jan. 12, 2009
Bush Agrees To Obama Bailout Request
Obama Seeks Final $350 Bailout Funds Available For His First Days In Office
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President-elect Barack Obama's top economic adviser urged lawmakers to release the second half of the $700 billion financial bailout. (AP Photo/Charles Dharapak)
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Obama also sharply criticized Bush's handling of the money and promised radical changes.
Bush's move sets the stage for Obama to get swift access to the $350 billion and the opportunity to overhaul the much-criticized rescue package after taking office next Tuesday. Obama said that it would be "irresponsible ... to enter into the administration without any potential ammunition should there be some sort of emergency or weakening of the financial system."
Congress, where the use of the money has met stiff bipartisan skepticism, has 15 days to vote to reject the request. Senate Majority Leader Harry Reid, D-Nev., was considering holding a vote on a resolution of disapproval as early as Thursday in hopes it would be defeated, thus making the funds available about a week after Obama inherits one of the worst financial crises in U.S. history.
"It is clear that the financial system, although improved from where it was in September, is still frail," Obama said, a few hours after seeking Bush's help in requesting the money.
Speaking on CBS' The Early Show, Sen. Chris Dodd set out the conditions necessary for Congress to approve spending the second half of the $700 billion federal rescue plan, saying that in order to win authorization of such additional spending, the government will have to do a much better job of accounting to the taxpayers for where money already spent has gone.
Dodd said that Mr. Obama had expressed to him his dissatisfaction with how TARP money has been administered so far and that he intends to "re-brand" the program.
"He's not happy with how mismanaged this program has been over the last several weeks," Dodd told CBS' The Early Show. "Money going to lenders without assurances [they] are actually going to lend, executive compensation not being limited, as it was promised it would be. So there need to be far more assurances about the accountability standards and how this is all going to work.
Dodd said he was encouraged by assurances during a two-hour meeting yesterday with Summers and feels "better this morning" about prospects for approval.
If Congress goes along, Obama would have a huge cache of bailout money at his disposal - and much more to come in the approximately $800 billion economic stimulus bill that Democratic congressional leaders promise to finish by mid-February. Congress also is racing to have ready for Obama a $35 billion health insurance program for children.
Obama acted quickly, sending prompt reassurances to congressional leaders that the money would aim to help free credit for small businesses and consumers and reduce the rising number of foreclosures. Separately, Larry Summers, Obama's choice for National Economic Council director, said the new president intends to also impose tougher restrictions and oversight on how the money is spent.
"Many of us have been disappointed with the absence of clarity, the lack of transparency, the failure to track how the money's been spent and the failure to take bold action," Obama said.
In a letter to congressional leaders, Summers said an Obama administration would "launch sweeping efforts to address the foreclosure crisis" and, in a bow to Republican critics of the plan, said it would seek to replace the government money with "private investments as quickly as possible."
Obama and the Bush administration had been negotiating for days on how and when to seek access to the second half of the Troubled Asset Relief Program. His economic team also has been working with congressional Democrats, in particular House Financial Services Chairman Barney Frank, D-Mass.Click here to read Larry Summers' letter to Congressional leaders.
Frank has introduced legislation that would require at least $40 billion of the money be used to reduce the number of foreclosures. His legislation also would set new conditions on institutions that receive the money, including limits on executive compensation. Frank's committee is holding a hearing on the program on Tuesday and the House is scheduled to vote on his legislation this week.
"We should not allow our disappointment at the Bush administration's poor handling of the TARP program to prevent the Obama administration from using the funds in more appropriate ways," Frank said in a statement Monday.
But other lawmakers were hardly supportive.
House Republican leader John Boehner of Ohio warned that it would be irresponsible to spend the money without a plan showing how the government would eventually extricate itself from underwriting the financial markets.
"I remain disappointed about the way TARP has been managed and how its resources have been spent over the last several months," he said. He added: "I will oppose the release of these taxpayer funds when the matter is considered on the House floor."
Even Democratic allies were wary.
Sen. Barbara Boxer, D-Calif., said Obama called her Monday morning to seek her support for the additional money.
"I told him that for me to vote for this a second time, I'm very, very hesitant to do it," she said. "I need to make sure that there's going to be transparency, that there's going to be help for housing."
At his news conference, Bush defended his handling of the first $350 billion.
"I readily concede I chucked aside some of my free market principles when I was told by chief economic advisers that the situation we were facing could be worse than the Great Depression," the president said.
But he credited the program so far with improving the credit environment, saying that "lending is just beginning to pick up."
Congress approved the program in October, authorizing $700 billion to assist the financial industry.
The current administration has already committed the first $350 billion, using it to inject capital into banks with few strings attached and to bail out ailing financial companies considered too big to fail without further damage to the economy. A small portion of the money has gone to automakers General Motors Corp., and Chrysler LLC.
© MMIX, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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See all 319 CommentsBush is the worst President in U.S. history.
Posted by peace4321 at 10:33 AM : Jan 12, 2009
What''s the name got to do with that? Helll the VAST majority of this ENTIRE Nation... NO! The ENTIRE WORLD finds this loser to be the WORST in our HISTORY. LOL We just had an election where the Fascist Party told him to stay home while THEY ran AGAINST him for crying out loud!! ROFLMAO I mean just HOW MUCH FAILURE would it take for you losers to admit he''s the WORST ever? Seriously, we''re IN a Depression, our Enemy has COMPLETELY REBUILT and is as strong as ever and Just about EVERY nation on the Planet wants to try the MORON for War crimes.. HONESTLY!! EIGHT MORE days PEOPLE and the PARTY begins!! EIGHT MORE DAYS!!
Talk is * very* cheap and if Obama listens as well as he talks, we might all have a better future.
Bush was a fine President- mistakes and all..the one success was his ability to keep America safe. To underestimate that is a an error in bad judgement.
Posted by peace4321 at 10:14 AM : Jan 12, 2009
You have a right to your opinion but the FACTS remain. We were attacked and not only were those who attacked us able to escape us while this piece of human trash took us into a War that had NOTHING, ABSOLUTELY NOTHING to do with the attack on us. NOW we find that Enemy Completely rebuilt and ready to attack some more. IF I''d have done my Job that way in the Marine Corps, I''d have left a Buck Pvt on a DISHONORABLE DISCHARGE. You people are SICK!! I mean EVERYONE likes their Party but when you see THAT kind of FAILURE... Man that ain''t just a mistake!! THAT is INCOMPETENCE!!
Posted by mrs_zambesi at 10:39 AM : Jan 12, 2009
Why? Can you give me ONE, just ONE day in his entire 8 years when HIS economic Plan had this nation operating in the Black. JUST ONE DAY when we were NOT borrowing money and going in the HOLE!! BE AN AMERICAN for goodness sake. NO ONE in their right mind can call him anything but a complete, absolute and TOTAL FAILURE!!
I can''''t wait for the Hague to get their hands on him.
It''''s going to take us 10 years of perfect behavior to regain our good world image.
Posted by slownewsdaze at 10:41 AM : Jan 12, 2009
LOL I think the Fascist think the American People will object.. they will NOT! He is without a doubt the most hated man on this or any other planet. He brought Fascism to a new HIGHT, even for a Klan Man. He''s about as disgusting a creature to ever crawl on planet earth that''s for sure.
I lieu of bashing Pres.Bush I would thank him for his service while I hope and pray our future administration can build on Pres. Bush'' acomplishments.G-d bless you..Pres. and Mrs Bush.
You are the "moron" You disprespect the current President with your crass comments. What will you do when the next President mis-steps? Grow up
Posted by peace4321
MIS-STEPS..THAT''S FRESH....REALLY! WHO SOLD IT TO YOU, I WANT WHAT YOUR HAVING....REALLY I DO...GIVE ME SOME....
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Ummm...didn''t September 11 happen on his watch? Correct me if I''m wrong.
I lieu of bashing Pres.Bush I would thank him for his service while I hope and pray our future administration can build on Pres. Bush'' acomplishments.G-d bless you..Pres. and Mrs Bush.
Posted by irmcvet971 at 10:49 AM : Jan 12, 2009
Just a big Amen to this!!!
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I''m sure some Germans reflect fondly on Hitler''s tenure as well.
I lieu of bashing Pres.Bush I would thank him for his service while I hope and pray our future administration can build on Pres. Bush'''' acomplishments.G-d bless you..Pres. and Mrs Bush.
Posted by sheila2u at 10:47 AM : Jan 12, 2009
OH PLEASE!! He put this nation and THOUSANDS of our best into a desert to DIE for absolutely NO REASON. Why should the Enemy Attack us?? They had our very best out there for target practice WHILE they were driving us into bankruptcy. NOW we are told by our Intel that those who attacked us are not just back but back as strong as they were when we were attacked. THAT means EVEN MORE of our Wealth, WEALTH we do NOT have because of his FAILED ECONOMIC POLICY, and MORE of our precious troops are going to have to suffer that which HE promised to do. Just HOW MUCH failure would it take for you sheep to admit the TRUTH??
And what do we get by keeping these wealthy Wall Street parasites in our country?
They, not Exxon, manipulated Oil prices, according to 60 minutes:http://www.cbsnews.com/stories/2009/01/08/60minutes/printable4707770.shtml
It is used to pay for their fourth and fifth luxury homes: http://tinyurl.com/5qf7cu
And taxpayer funded parties: http://tinyurl.com/562moo
While our elderly are forced into the streets by the absurdly rising costs of everything, all manipulated by Wall Street
http://tinyurl.com/9lyamh
Post pardom is passe''''..sorry, but I don''''t care you are angry any more that I care whether Obama is better. You must understand, without security of country you would not have this opportunnity to vent your anger.
Basic human decency gives you the right to the 1st Amendment, but not to harrass others.
Posted by peace4321 at 10:52 AM : Jan 12, 2009
EXCUSE ME??!! WHO was it on here calling Combat Vets like MYSELF UnAmerican when WE tried to warn American''s about the OBVIOUS LIES of Bush. Those WEREN''T MISSTATEMENTS my friend THOSE were lies. HE no more had a "Smoking Gun" forcing him to remove those UN Inspectors in IRAQ than you have the ability to respect those who don''t agree with you. I have sat here day after day as "Ditto Heads" like you spewed hatred at people who turned out, not to be just right, but so right it''s SCARY! WHEN YOU people start treating OTHERS with the same respect and honor, when you freaks stop referring to anyone who doesn''t agree with you as a "Lib" or one of a HUNDRED other labels will I treat you the same. Until then YOU deserve every OUNCE of anger any True American can direct at you... and MAN that IS a LOT!!
Posted by peace4321
THEN LEAVE!!! THE PRO-BUSH RALLY IS 3 DOORS DOWN ON THE RIGHT, 2ND STALL ON THE LEFT. JUST FOLLOW YOUR NOSE HIS SSHHIIIT SMELLS LIKE NO OTHER.
Hey, Peace, I *did* write BOTH of my Senators, AND my Congressmen. Know what I got back? Form letters explaining why they don''t think Wall Street has anything at all to do with oil prices, and why they NEEDED to block the anti-Wall Street speculation bill by tacking on a requirement to start drilling in the middle of every US national park and wildlife sanctuary.
The cycnicism, arrogance, and corruption of the GOP, and our Federal Government, vastly exceeds ANYTHING ever done by the British Government OUR FOREFATHERS REVOLTED AGAINST TO FORM THIS COUNTRY!
We. Have. Been. Sold. Out.
Wall Street has BOUGHT OUR GOVERNMENT.
Posted by peace4321 at 10:55 AM : Jan 12, 2009
LOL Don''t look over your shoulder to much sparky because WE, the American''s you''ve hated and treated with such disrespect for so long?? WE will be there. Sieg Heil Y''all.
And what do we get by keeping these wealthy Wall Street parasites in our country?
They, not Exxon, manipulated Oil prices, according to 60 minutes:http://www.cbsnews.com/stories/2
009/01/08/60minutes/printable4707770.sht
ml
It is used to pay for their fourth and fifth luxury homes: http://tinyurl.com/5qf7cu
And taxpayer funded parties: http://tinyurl.com/562moo
While our elderly are forced into the streets by the absurdly rising costs of everything, all manipulated by Wall Street
http://tinyurl.com/9lyamh
Posted by mrs_zambesi at 10:59 AM : Jan 12, 2009
I don''t want to LIST, I''ve seen them before and they EVERY LAST ONE OF THEM are LIES and HALF TRUTHS. Lets go to the BASIC''S... IF I can''t put FOOD on the Table then EVERYTHING else does NOT matter. Give me ONE MONTH, not a LIST, ONE MONTH, when TRICKLE DOWN has NOT been running this nation into the RED. WE KNOW you freaks took over with a BALANCED BUDGET AND a SURPLUS. So dazzle us, IF you have that LIST there should be at the very least ONE MONTH when we at least BROKE EVEN?? Now YOU want to talk about FAILURE folks... going from a balanced budget and a SURPLUS to MASSIVE DEBT in EIGHT YEARS and NEVER having ONE MONTH when we were NOT in the RED??? THAT is FAILURE!!
Posted by peace4321
GET IT RIGHT!!!! Disgusting Americans on this post- You all can go to a Bush Free Hell.
Posted by demswin08 at 10:57 AM : Jan 12, 2009
That''s something else this new generation had better learn and they''d better do in QUICK! In my day these creatures wore Hoods and Sheets and were teaching Equal but Different. Sure they took off the HOOD but that is all. They are just the same creatures NOW as they were 50 years ago.
Posted by mrs_zambesi
Your stupid, learn to spell and then defend Chief Dummy.
Posted by mrs_zambesi at 11:05 AM : Jan 12, 2009
Do you see what I mean folks? This poor simple minded fascist comes on praising Bush. I challenger her to give us his accomplishments. She says she doesn''t have time for such a LIST. Then I ask her to give us ONE MONTH when Trickle Down has NOT run us into the RED! Posted here is the response of a FASCIST! It''s NOT their fault the Fuhrer''s PLAN didn''t work. It''s not HIS fault we lost 250 THOUSAND JOBS last year... It''s MY fault. I just wasn''t a good enough "Party" member! GOD WERE DO YOU PEOPLE COME FROM?? I''m SERIOUS! You are no more American than MY DOG!! Sieg Heil Y''all.
QUEEN OF ALL LIARS ALERT!!!! DON''T BELIEVE A WORD SHE SAYS.
And for the people angry that Bush is being criticised, someone here made a good point, even the Republicans ran against him during the election.
Posted by TexHillGirl at 11:06 AM : Jan 12, 2009
He''s not even in office yet and you''re having fits... I guess you''re in for a rough 8 years of eating crow. Enjoy!
Posted by cfin5 at 11:15 AM : Jan 12, 2009
Now THAT''S FUNNY!! NO AMERICAN IN MY NEIGHBORHOOD goes to KLAN RALLY''S thank you just the same. NO ONE in MY Neighborhood goes around calling our NEWLY Elected President a MARXIST! MAYBE you need to get out a little more?? VISIT some FREE STATES... get a flavor for the NATION that ELECTED this YOUNG INTELLIGENT BLACK MAN we''re putting in office in 8 Day''s. Sieg Heil Y''all
Do you feel really SMART NOW? You think you can order us around now, becasue you helped put a FASCIST COMMIE IN THE WHITE HOUSE?
Posted by TexHillGirl at 11:18 AM : Jan 12, 2009
BAAAAAAAAAAAAAAHAHAHA Now listen of lover of the Confederate Flag. I have FOUGHT Communist, I have KILLED Communist and YOU wouldn''t know one if they bit you on the behind. Now go lay down, you have a VERY busy 8 years ahead... ROFLMAO Sieg Heil Y''all.
Posted by demswin08 at 11:18 AM : Jan 12, 2009,.....The way I see it, Hillary took all the big blue states, worked harder than B. Ohbummer for the disenfranchised states of Michigan and Florida. And then the DNC somehow swindles her efforts away from her in favor of the huge Muslim wallet padding for BO.......Funny thing what being BETRAYED does to one''s attitude isn''t it. At least she can see it, but you cannot.
Posted by TexHillGirl at 11:20 AM : Jan 12, 2009
Nope. Live on the West Side near O''Hare. Now tell me where did you burn the cross this weekend? I''m dying to know because these pathetic losers usually end up setting one of their own on fire. LOL Say did you freaks pass out the Traitors Flag this week? They like to pass out the Confederate Battle Flag at their Rally''s. We used to like to torment them by burning one at OUR rally''s. LOL Sieg Heil Y''all.
Posted by cfin5 at 11:22 AM : Jan 12, 2009
EIGHT DAYS swastika breath... Time to either get on board of get left in the dust!! I''d suppose YOU want MORE trickle down??
Posted by demswin08 at 11:24 AM : Jan 12, 20
I wouldn''t pay much attention to him. He''s one of the OLD Divide and Conquer Ditto Heads. They are part of a very bad past and a lot of failure, they want to blame on American''s... They will say or do ANYTHING to bring down our New President. AMERICAN''s they ARE NOT and we should put them in the past where they belong.
Posted by TexHillGirl at 11:26 AM : Jan 12, 2009
The Process must have been okay with Hil, since she stepped up and ask ALL of us to support our NEW LEADER...so much so SHE accepted a post in HIS cabnet. Kinda ruffles the old sheet there don''t it? ROFLMAO Sieg Heil Y''all.
Mysterious and spooky, She''s all together ooky.
Posted by TexHillGirl at 11:27 AM : Jan 12, 2009
LOL YOU are a LIAR! Now tell me! Where did you freaks burn that Cross this weekend. I got a good friend who works with Klan Watch and he''d like to know. SIEG HEIL Y''all.
You was either selling crack which would get you killed anyway or you was a Ho being pimped by your sugerdaddy.
Posted by demswin08 at 11:31 AM : Jan 12, 2009
LOL YES! A ROOSEVELT ROAD ROSIE!! LOL
Posted by TexHillGirl
HOW SAD, SHES BECOME DELUSIONAL NOW....
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