AHN Staff
Washington, D.C. (AHN) - Democratic and Republican leaders in the Senate hinted Monday they are in favor of releasing the second half of the TARP worth $350 billion. The Senate approval is likely even if a large number of rank-and-file legislators disagree with the manner the outgoing Bush administration managed the program.
The anticipated Senate assent appears to have been influenced by President-elect Barack Obama's emphasis on having more oversight over the program. While waiting for Congress' action on President George Bush's formal request for Congress to release the remaining $350 billion TARP funds, regulators ordered banks which received the bailout money to give more information how they use the funds.
Banks have been accused of hoarding the cash instead of lending it to businesses and homeowners, defeating the purpose why they were given access to the bailout money.
Lawrence Summers, Obama's designated director to the National Economic Council, wrote Congressional leaders to seek the approval of the release of the TARP funds. He promised an overhaul on the bailout program through more oversight and stronger efforts to stop home foreclosures.
The Senate vote on Bush's request is expected as early as Thursday. Congress has 15 days to pass a resolution to block the release of funds, according to the bailout law.
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