President-elect Barack Obama promised last Monday that he will perform better than former President George Bush in using bailout funds to help the American population. He gave the statement during the formal asking for the turnover of the other half of the said fund which is worth $700 billion. He further said that his focus will be on housing, particularly foreclosure prevention.
One of the first priorities of the President is to help settle hostility on Capitol Hill regarding the Troubled Assets Relief Program (TARP). Apparently, many say that not a single amount from the first half of the bailout fund was used to help foreclosure troubled families.
The request for the second half of the fund is most likely to be approved by Congress. The money is expected to be granted to Obama soon.
According to Lawrence Summers, head of the National Economic Council of Obama, they would be implementing changes on how the fund would be handled. The administration would be practicing transparency, acting quickly and wisely, and most definitely part of the fund would be dedicated to reducing foreclosure incidence in the country.
Obama has done measures to appease dismayed lawmakers. One of which is Senator Barbara Boxer whom Obama gave a phone call two times last Monday. The Senator is among those who were disappointed on how the first half of the bailout fund was managed. She believes that something has to be done to eradicate the foreclosure crisis and the fund has to serve that purpose.
Chairman Barney Frank of the House Financial Services Committee recently held a hearing on legislation that will bring about some changes to the TARP. One of which is that $40 billion-$100 billion of the remaining money shall be used in revising mortgages in order to prevent foreclosure.
Obama recognizes that despite the slight improvement in the financial system, it is still in a weak state. If he were to address the economic problems in the country, particularly that of foreclosures, he has to enter prepared with ammunition.
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