Democrats Readying Legislation in Case Treasury Asks for More TARP Funds

[babylonsister]

Democrats Readying Legislation in Case Treasury Asks for More TARP Funds
By Benton Ives, CQ Staff


House leaders are readying legislation to strengthen foreclosure prevention language in the $700 billion financial bailout law if the Bush administration asks for the second half of the money.

House Speaker Nancy Pelosi said Monday she has directed House Financial Services Chairman Barney Frank , D-Mass., to write a bill that would enforce language in the bailout law intended to keep people in their homes.

If the administration petitions Congress for the remaining $350 billion of the bailout money, Pelosi wants to “have legislation that insists that the provisions of the law be honored before we release any more funds.” Under the bailout law — dubbed the Troubled Asset Relief Program — Congress has the ability to block the second bailout allotment if the Treasury Department asks for it.

Pelosi, D-Calif., did not say whether Congress would pursue similar legislative changes to the bailout (PL 110-343) under an Obama administration.

Given widespread congressional opposition to the way the bailout is being run — particularly after Treasury abandoned plans to purchase souring assets in favor of direct capital infusions to banks — making changes to the law might be the only way the department can access the remaining funds.

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http://www.cqpolitics.com/wmspage.cfm?docid=news-000002997954

[nykym]

1. She really needs to

override the provision *ush insisted on concerning use of the funds for exec bonuses