WASHINGTON, Jan. 13 (UPI) -- U.S. Senate leaders indicated tepid support to release the second half of the $700 billion in U.S. financial systems bailout funds.
Meanwhile, the Federal Deposit Insurance Corp. directed 1,500 banks to provide more information about how they have used their bailout funds, responding to concern that financial institutions were keeping the money instead of lending it, The New York Times reported.
President George Bush Monday formally requested the remaining $350 billion from Congress at President-elect Barack Obama's request. The law allows Congress to block the release if the House and Senate affirmatively act to do so.
Aides said Obama planned to attend Tuesday's weekly lunch of Democratic senators at the U.S. Capitol, where he was expected to urge them to approve the bailout money, formally called the Troubled Asset Relief Program.
Lawmakers from both parties said Obama has offered insufficient information about his plans, The Washington Post said, with several indicating they would oppose the release unless Obama provides specific assurances about how he will use the money.
"Bringing stability to the credit markets is critical to improving the overall economy, but I would be hard-pressed to support additional funding for the TARP without sufficient assurances this money will not be wasted, misspent or simply used for more industry-specific bailouts," Senate Minority Leader Mitch McConnell of Kentucky said in a statement.
Lawrence Summers, Obama's designee to lead the National Economic Council, sent a letter to congressional leaders, pledging to overhaul the rescue program, including more oversight, a new effort to prevent home foreclosures and tougher conditions on companies receiving aid, including limits on executive pay and shareholder dividends.
