Despite skepticism, release of rest of U.S. bailout funds gains favor

Republican and Democratic Senate leaders signaled on Monday that they would support the release of the second half of the Treasury’s $700 billion financial system bailout fund, despite anger among many rank-and-file lawmakers over the Bush administration’s management of the program.

As Congress prepared to act, regulators directed thousands of banks to provide more information about how they have used the money received through the bailout program, responding to concern that financial institutions were hoarding the cash rather than lending it to businesses and consumers.

President-elect Barack Obama said on Monday that like Democrats and Republicans on Capitol Hill, his administration would demand substantially greater oversight of the program.

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Posted in * Economics, Politics, Economy, Politics in General, The September 2008 Proposed Henry Paulson 700 Billion Bailout Package