Paulson Urges Release of Next $350 Billion From TARP

Shouldn't Congress find out how the first $350 billion was "spent?" Source: Bloomberg
Dec. 19 (Bloomberg) -- Treasury Secretary Henry Paulson urged Congress to release the second half of the $700 billion financial rescue fund after the government exhausted the first $350 billion in less than three months.

Congress, which passed the Troubled Asset Relief Program on Oct. 3, “will need to release the remainder of the TARP to support financial market stability,” Paulson said today in a statement released in Washington.

The Treasury today agreed to lend $13.4 billion to General Motors Corp. and Chrysler LLC, after spending $335 billion mostly to increase bank capital. Lawmakers, who can vote against giving Paulson the remaining funds, have criticized the Bush administration for not using the rescue package to help stem foreclosures.

Paulson’s call for the other $350 billion may set off a debate in Congress, where some members have criticized the Treasury chief’s management of TARP and demanded more help for struggling homeowners. The chairmen of the House and Senate banking panels have said they are reluctant to give the outgoing Bush administration access to the rest of the money.
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