Obama Adviser Open to the Possibility of More Funds to Help Banks and Reduce Foreclosures

Top economic adviser of President Barack Obama and National Economic Council head Lawrence Summers is open to the possibility that more money will be allocated to bailout financial institutions and reduce the number of foreclosed homes in the country. Summers had promised to spend up to $100 billion of the financial bailout money to help homeowners avoid foreclosure. Meanwhile, Obama is planning to meet with Congress to try to gain access to the remaining second half of the $700 billion Troubled Asset Relief Program (TARP) bailout money. Obama's economic team is also preparing to meet with members of the Senate to discuss whether to allocate a portion of the TARP money for foreclosure prevention. On his part, Summers had sent a letter to the Democratic leaders in the Senate assuring them that he will spend $50 to $100 billion of the bailout fund to reduce the number of distressed properties. He said that Obama and Treasury Secretary nominee Timothy Geithner believed that the $825 billion economic stimulus package pending before the Congress will greatly help in the country's economic recovery. Summers added that Obama is committed to spending more than half of the $825 billion within one year and six months after its release to various programs such as state aid, local government aid, tax cuts and foreclosure prevention. Furthermore, Obama has pledged to reduce taxes on households by 95 percent. According to Summers, there is a need to repeal the tax cut approved by former U.S. President George W. Bush because of the worsening budget gap and massive spending in the country. Meanwhile, House Speaker Nancy Pelosi said that additional money is needed more than the approved $700 billion funds if it will be used to help banks and reduce the number of foreclosed properties. She believes that the spending of the bailout fund under the Obama Administration will be more transparent. Start your Search for:

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