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Obama poised to win vote on $350bn bail-out fund
Paul Thompson in Miami15 Jan 2009
BARACK Obama will today find out if he has won the backing of US politicians over his request for $350 billion in bail-out funds.
The president-elect faces his first challenge to securing the money when the US Senate votes today on his request for the remainder of the money approved as part of a rescue package for banks last year.
While some members of his own party have voiced opposition to releasing the funds, House Majority Leader Nancy Pelosi indicated that Congress would back Mr Obama. The President-elect has spent the last two days meeting Senate leaders to stress the urgency of the action needed. Mr Obama has said he will use the money to help homeowners who face losing their homes and struggling small businesses rather than give it all to Wall St.
Democrats and Republicans have expressed reservations over releasing the money as they want a firm guarantee on how it will be used. Many are angry that the banks and financial institutions were handed the money by the Bush administration without having to explain how it will be used.
Republicans were also angry that car makers got more than $17billion to avoid bankruptcy. Mr Obama has threatened to use his veto to access the funds, but aides say he is hopeful political leaders will back him.
His hand was strengthened yesterday after the Commerce Department reported that retail sales plunged more than expected last month - a record sixth consecutive monthly decline.
Ms Pelosi said on US TV that if the money was approved it would be because Mr Obama had promised greater transparency in where it is spent. She added Congress was angry at the way the Bush administration had spent the first half of the $350billion rescue package, known as TARP.
Ms Pelosi said: "You don't expect to give somebody tens of billions of dollars and say, 'Don't tell me how you're going to spend it'.
"Things will be different because we will have a president who will enforce the law, and with the light of transparency that will be built into any new law - if there is to be any more TARP funding." Mr Obama said "failure was never an option" for his plan to kick start the economy. He said he was confident that the estimated $800billion stimulus package he is requesting when he assumes power would help get the US economy back on track. The majority of spending would be used on "critical infrastructure that will set the table for long-term economic growth".
Mr Obama added: "The general outlines of the plan are ones that we have run by economists from the Left and the Right, conservative, liberal. This is a package that I think is going to make sense. I have every confidence that it's going to work. But it's going to take some time. And we've got to do it with some speed. So my main message to Congress right now is 'get it done'."
Reader views (1)
who is going to repay these huge sums of money? the taxpayer of course.
will us ever be in a position to repay this debt? don´t think so.why ? because its bankrupt right now.
- Ebbi, valencia spain, 15/01/2009 14:41
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