House Rejects Approval of Remaining $350b TARP Funds

The House of Representatives voted 270-155 to reject the release of the remaining $350b of TARP funds that are left over from the original $700b Troubled Asset Relief Program. They want Treasury to provide more definitive information on how to use the TARP funds. Treasury under Paulson was in a triage situation and needed to use initial distributions as they say fit. Now lawmakers want more defined goals for the money. Making banks do certain, specific things with the money would be a good start.

House lawmakers on Thursday voted to reject release of the second half of a $700 billion bank bailout fund, however the vote will not block the capital release because the Senate voted last week to clear the way to release those funds. Lawmakers in the House voted 270-155 to pass a so called “resolution of disapproval” introduced by Rep. Virginia Foxx, R-N.C. that would block the release of the funds. The House on Jan. 21 approved legislation that would impose several conditions on how the Treasury Department would use the funds. Both votes indicate that lawmakers in the House want to see the Treasury Department use the funds in a different way than how they are being employed. The House condition measure would require Treasury to use between $50 billion and $100 billion of the funds for foreclosure mitigation. The funds are expected to be released on Jan. 27.