Obama team, Treasury meet on bailout

WASHINGTON, Dec. 6 (UPI) -- U.S. Treasury Department officials have talked with the Obama transition team about tapping $350 billion in unused financial bailout funds, sources say.

The Treasury Department is working on ideas to unfreeze the credit markets that could involve gaining access to unused half of the $700 billion authorized by Congress for bailouts. But Bush administration officials have determined they need to gain the approval of U.S. President-elect Barack Obama before they make any such efforts, unnamed sources told The Washington Post.

The newspaper said Treasury officials have already aired the possibility of seeking the second half of the funds with Obama transition team officials, who in turn have said they would attend a meeting with congressional leaders and the Bush administration if the department arranged one.

The sources said Obama has yet to decide whether the Treasury should receive the rest of the funds. However, they added, because he has agreed to allow his aides to meet with Bush administration officials and lawmakers on the issue, he appears to be demonstrating his willingness to engage on the issue.