Lawmakers Dodd, Frank Warn Paulson May Not Get Second Half of TARP Money

[marmar]

Dodd, Frank Say Treasury May Not Get More TARP Funds (Update2)


By John Brinsley and Alison Vekshin

Dec. 4 (Bloomberg) -- Senate Banking Committee Chairman Christopher Dodd said he opposes giving the Bush administration the second half of the $700 billion financial rescue plan, joining Republicans upset with how it is being managed.

“I would be a very hard person to convince that this crowd deserves to have their hands on the next $350 billion,” Dodd, a Connecticut Democrat, told reporters today in Washington after a hearing on whether automakers should get government aid. “I am through with giving this crowd money to play with.”

Dodd, who is trying to forge a compromise in Congress that would give automakers assistance, also criticized the Federal Reserve for not sending a representative to the hearing. He wrote Fed Chairman Ben S. Bernanke yesterday asking what’s preventing him from lending to the companies, an idea rejected this week by at least two central bank officials.

House Financial Services Committee Chairman Barney Frank also faulted the Treasury for ignoring the “clear congressional intent” of the Troubled Asset Relief Program to reduce home foreclosures. He said Paulson may be blocked from accessing the money. Under the terms of the law, lawmakers have 15 days to reject a request for TARP funds.

“At the very least, he’d have to agree that some of that money was going to be used for foreclosure relief,” Frank, a Massachusetts Democrat, told reporters after a speech at a Consumer Federation of America conference in Washington. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601068&sid=aCCnou4rggxg&refer=home

[nc4bo]

1. I thought the last portion of TARP was to be administered by the next admin.?

:wtf: happened to that?!

[Possumpoint]

3. Surprise

Washington politics.

[nc4bo]

4. Like the screwing couldn't get any worse. I hope Congress stands their ground but

given their past actions (or lack thereof), I refuse to deny myself oxygen waiting for a well the "FU boys".

:grr:

[Ichingcarpenter]

2. I expect Congress to rollover

even though the agreement was the 2nd half of the money
was to be used by the next congress and administration.