175 Billion in TARP bank bailout money will go for deficit reduction, not public works job programs [View All]

[Better Believe It]

Obama set to extend bank bailout fund
CNBC: $175 billion in TARP funds will also be dedicated to deficit reduction
December 9, 2009

WASHINGTON - The Obama administration plans to announce on Wednesday that it intends to extend the life of the $700 billion financial bailout fund until next October, officials said Tuesday.

CNBC also reported that $175 billion in funds from the Troubled Asset Relief Program (TARP) would be dedicated to deficit reduction. The amount represents the total the Treasury expects to be repaid by banks through 2010.

One official told Reuters that the administration was expected to pledge to use no more than $560 billion from the fund. Another said the plan would be to tap the program to help homeowners secure mortgages through the government's housing program and to free up credit for small businesses to spur job growth.

At the end of November, $560 billion had been allocated from the TARP program, the same amount the administration is now expected to declare as a cap.

http://www.msnbc.msn.com/id/34341033/ns/business-economy_at_a_crossroads