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Paulson: Treasury needs the other $350B

Dec. 19, 2008 at 5:40 PM

WASHINGTON, Dec. 19 (UPI) -- The remaining $350 billion in bailout funds is needed to ensure the stability of financial markets, Treasury Secretary Henry Paulson said Friday.

Paulson said, with the $13.4 billion loan to General Motors and Chrysler LLC announced Friday by President Bush, most of the $350 million already appropriated by Congress is now allocated, The Washington Post reported.

Many members of Congress have been angered by the choices the Treasury has made for the Troubled Assets Relief Program. Most of the money, $315 billion, is to be used to inject capital into banks and the insurance company AIG, with another $20 billion committed to restoring liquidity to the consumer credit market.

Paulson said that the allocations so far are adequate to prevent another major crisis.

"It is clear, however, that Congress will need to release the remainder of the TARP to support financial market stability," he said.

One question is whether Treasury will wait until President-elect Barack Obama is inaugurated to ask for the remaining $350 billion.

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