Bush Asks Congress For Second Half Of TARP On Obama's Behalf

Washington D.C. (AHN) - President Bush on Monday granted President-elect Barack Obama's request to release $350 billion in remaining TARP funds providing the incoming leader emergency money in case the financial system weakens early in his term.

Bush made the move shortly after his final White House new conference, White House spokeswoman Dana Perino said.

Obama contacted Bush and asked him to notify Congress that he will seek the release of $350 billion in remaining TARP funds. The notification will begin the 15-day period for Congress to vote down the release of the funds if they deem fit.

Obama takes office on Jan. 20. With Bush's request; he would only have to wait one week to use the remaining TARP funds.

Obama's staff is already working on expanding the uses of the remaining TARP funds beyond buying stakes in banks. The efforts are being coordinated with the Democratic majority in Congress and will likely include initiatives for stopping home foreclosures and providing liquidity to banks.

Obama will ask the Treasury Department to enact strict conditions on executive compensation until tax money is repaid and look to send more money toward assisting community banks, said top economic advisor Larry Summers in a letter to Congressional leaders.

According to the Associated Press, Obama said that it would be "irresponsible ... to enter into the administration without any potential ammunition should there be some sort of emergency or weakening of the financial system."

If the TARP funds are approved, it would give Obama a vault full of bailout money to work with as he awaits an economic stimulus bill, which democratic leaders say will be ready by mid-February and carry about an $800 billion value.