Extending unpopular TARP considered

WASHINGTON, Nov. 19 (UPI) -- Sources close to the government said the Obama administration is leaning toward an extension of the $700 billion bailout fund, in part to pay down U.S. debt.

For many, the massive Troubled Asset Relief Program played out like a get-out-of-jail-free card given to Wall Street despite the role big banks played in the financial meltdown that led to a near-global recession. As such, some administration officials are pushing for $200 billion in TARP funding to pay off a portion of the nation's $12 trillion debt with hope the political fervor over an extension of the unpopular program might be softened, The Washington Post reported Thursday.

Others said TARP funds could be used to save or create jobs.

"We want to look at how Wall Street can refund Main Street," Rep. John Larson, D-Conn., said.

The TARP account holds $139 billion that has not been loaned out. Banks have returned an additional $71 billion. In addition, the Treasury has earned $10 billion from fees, dividends and interest payments with the program.

At a Joint Economic Committee meeting Thursday, Treasury Secretary Timothy Geithner said the administration was working to "put the TARP program out of its misery," although a formal decision has yet to be made, The Wall Street Journal said.