Obama wants to get $350 billion of TARP money

The Associated Press has reported that president-elect Barack Obama addressed the administration of George W. Bush and asked for the remaining $350 billion of TARP money. 

“I think many of us have been disappointed with the absence of clarity, the lack of transparency, the failure to track how the money has been spent and the failure to take bold action in areas like housing,” explained Barack Obama.

Last October the government has assigned $700 billion for helping to get mortgage bonds off the balance sheets of banks. However, half of the money was spend to support banks directly.

According to CNN report those money was spent for shoring up financial institutions: 

•    sent checks totaling $168 billion in varying amounts to 116 banks;
•    committed another $82 billion to capitalize more banks;
•    bought $40 billion in preferred shares of American International Group (AIG, Fortune 500) so the troubled insurer could pay off an earlier loan from the Federal Reserve;
•    committed $20 billion to back any losses that the Federal Reserve Bank of New York might incur under the Term Asset-Backed Securities Loan Facility;
•    committed to invest $20 billion in Citigroup on top of $25 billion the bank had already received;
•    committed $5 billion as a loan loss backstop to Citigroup;
•    agreed to loan $13.4 billion to GM and Chrysler to get them through the next few months.

“I felt it would be irresponsible for me, with the first $350 billion already spent, to enter into a new administration without any potential ammunition should there be any potential emergency or weakening of the financial systems,” said Obama.