Thread: Paulson: Congress must release rest of bailout

Paulson: Congress must release rest of bailout
Last half of $700 billion rescue needed as first $350 billion committed
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updated 9:51 a.m. MT, Fri., Dec. 19, 2008
WASHINGTON - Treasury Secretary Henry Paulson said Friday that Congress will need to release the last half of the $700 billion rescue fund because the first $350 billion has been committed.

Paulson said the use of the rescue fund to provide loans to the auto industry along with all the other rescue efforts for the financial system meant that the administration has now basically allocated the first half of the largest government bailout program in history.

He said he was confident that the Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. had the resources to address a significant market event if one should occur before Congress approves the use of the second half of the rescue fund.

But it is important for Congress to release the second half of the rescue fund "to support financial market stability," Paulson said in a statement.

Paulson said he will be consulting with congressional leadership and President-elect Barack Obama's economic team to determine how to proceed.

Under terms of the $700 billion rescue fund that Congress approved on Oct. 3, when the administration determines the second $350 billion is needed it has to submit a report to Congress detailing how it plans to use those funds.

The money automatically will become available unless both houses of Congress pass legislation blocking the funds within 15 days of receiving the administration's report. The request is expected to generate significant debate on Capitol Hill with key Democrats vowing to block the release of more money unless the administration includes greater efforts to help homeowners threatened with foreclosure.

House Financial Services Committee Chairman Barney Frank, a Massachusetts Democrat, has said the administration must allocate some of the new money for borrowers facing foreclosure, and impose more conditions to make sure banks use their rescue funds to increase lending.

"They're not going to get the (money) unless they get very serious about the foreclosure modifications and showing us how we're going to get some lending out of the banks," Frank said earlier this month.

Treasury officials said Friday that no decision had been made on when the request for the second $350 billion will be sent to Congress. They said Paulson was consulting on the matter with congressional leaders and members of Obama's

http://www.msnbc.msn.com/id/28313411

Treasury Secretary Henry Paulson said Friday that Congress will need to release the last half of the $700 billion rescue fund because the first $350 billion has been committed

Committed to who.......his buddies.....so they can sit on the money while Americans are devastated by loss after loss!!

Treasury Secretary Henry Paulson said Friday that Congress will need to release the last half of the $700 billion rescue fund because the first $350 billion has been committed.

I dont think congress should release any money until the American people know who the first 350 billion went to.

I cant help that this is a result of the Ponzi Scheme that Madoff created. Its a coincidende that both happened around the same time. Thats why its kept so secret and why it was rushed through the house. Its because all the rich elites got scammed and they decided to get their money paid back by the taxpayers.

I think Paulson should pay for the bail outs with his own money not our's!

Paulson tells the taxpayers we can't know which banks got bailout money as we might stop doing business with them. Meanwhile, with the auto bailout, the taxpayers know exactly who is getting how much and the terms. Banks (his buddies) got the TARP funds to lend because of the urgency to prevent a financial cataclysm and not giving Congress a moment to think about the whole mess before passing legislation. So, the rest of the world is looking at Paulson's presentation and realizing that the full faith and credit of the US gov't behind all of the securities they have bought (loaning us money) is not worth the paper it is printed on.