Half the Bailout Gone, Scrambling for Crumbs

Wednesday, November 12, 2008 9:37 AM

By: Greg Brown Article Font Size

Just a month ago, $700 billion sounded like a lot of money.

Not anymore. Half the money is spent, and while it’s hard to prove that cash has not helped to avoid a much more serious situation, say, the closure of thousands of banks, it’s equally hard to keep corporate lobbyists from crashing the gates at Treasury for a shot at what’s left.

Worse still, it seems very likely that the incoming Obama administration will be forced to either expand the program or tack on a new one as automakers, credit card companies, regional banks, and insurers — even auto dealers and boat sellers — line up, hat in hand.

Treasury is now down to $60 billion of the first $350 billion committed by the president. Treasury Secretary Hank Paulson would have to go back to Congress for the second half.

And that’s where the lobbyists come in.

“By the time they get to the community banks, there may not be enough money left,â€