bailout funds

The Senate voted 52-42 against a resolution that would have barred Obama from using the roughly $350 billion remaining in the program.
A number of senators crossed party lines on the vote. Six Republican senators voted for the release of the bailout funds, and nine Democratic senators voted to bar the use of the remaining billions.
Obama wants access to the remaining funds to expand lending to consumers and small businesses, but lawmakers from both sides of the aisle have expressed opposition to releasing the funds from the unpopular rescue plan.
Obama and his team members called senators all day in advance of the vote, a transition official said.
Earlier in the day, Larry Summers, Obama's economic adviser, sent a letter to Senate Majority Leader Harry Reid, seeking to reassure senators that the incoming administration would be more responsible with the second half of the bailout funds. Summers also pledged to commit $50 billion to $100 billion to address foreclosures.
In the letter, Summers wrote, "We completely agree that this program must promote the stability of the financial system and increase lending, preserve home ownership, promote jobs and economic recovery, safeguard taxpayer interests, and have the maximum degree of accountability and transparency possible."

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Summers added, "The incoming Obama administration has no intention of using any funds to implement an industrial policy."
Many Republicans say they were angry that President Bush used the money for the auto industry, and they disagree with proposals to spend the money on other industries beyond the financial sector.


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