Obama team, Congress divided on TARP ($330 billion remains in that slush fund)

Washington Times ^ | 7/10/09 | Sean Lengell

[Libloather]

Obama team, Congress divided on TARP
Lawmakers at odds over how to spend remaining $330 billion
By Sean Lengell
Friday, July 10, 2009

The Obama administration and Congress are squabbling over how to spend the hundreds of billions of dollars that remain from last year's $700 billion bank bailout fund.

The debate will grow more pressing in the coming months as Capitol Hill lawmakers review the progress and map out the future of the nine-month-old Troubled Asset Relief Program, or TARP.

While TARP was established to help jump-start the faltering economy by offering quick capital to financially distressed financial institutions, many lawmakers see the fund a potential pot of gold to help advance personal causes.

Rep. Barney Frank, chairman of the House Financial Services Committee, has introduced a bill that would set aside a portion of the dividends paid by financial institutions that have received TARP money for affordable housing programs.

"We clearly face a new wave of foreclosures" because of rising unemployment, the Massachusetts Democrat said at a committee hearing Thursday.

But fiscal conservatives - such Rep. Spencer Bachus of Alabama, the top Republican on Mr. Frank's committee - say the money instead should be used to pay down the national debt.

"Today, soaring deficits are the biggest threat to financial stability, economic recovery and job growth," Mr. Bachus said at the hearing.

Mr. Bachus added that if Mr. Frank's proposal were implemented, some of the money could find its way into the hands of nonprofit groups such as ACORN, the grass-roots community organization that have been accused of engaging in voter fraud.

**SNIP**

TARP is set to conclude at the end of the year unless Treasury Secretary Timothy F. Geithner extends it through fall 2010.

[combat_boots]

Without accountability, we acutally have no idea how much is left. At state or federal levels.

[LALALAW]

How ‘bout don’t spend it? Investigate ACORN’s tax exempt status.

[OafOfOffice]

What tarp are they talking about? Last night one of Obamas people said maybe 10% was left and she coughed when she said it. She had no clue.

So they are saying that the $350,000.00 that was handed to Obama when Bush left office has hardly been spent?

Or is this their hidden addition?

3 trillion promised.

Liars!!!!!!!!!

[NoobRep]

Ummmm how about pay off the national debt? Of course we all know it’s going to be used to put a “down payment” on Obama’s socialized health care plan.

[javachip]

Treasury does a pretty decent job reporting where there money's gone. You can find the reports here. The TARP Transaction Reports detail who got the money and who's paid it back. Further down the page, the Tranche Reports add some narrative to the program.

Doesn't mean it's a good program, but we do know how much has been 'invested'. Backing that out from the $700 billion authorized tells how much is left.

Over $440 billion has been spent. About $70 billion has been repaid. Total of 'investments' outstanding is about $370 billion.

[Pining_4_TX]

This is ridiculous. That money simply does not exist. If they have $330 billion, why not just give every American 1 billion and make us all rich? Because, the whole thing is an absurd farce from the get-go. It’s phony baloney money.