Obama Group Trying to Chalk Out Strategy to Tackle the Foreclosure Crisis
President-elect Barack Obama and his teammates are chalking out a strategy to tackle the foreclosure crisis. The group is aiming to widen the use of the $700 billion bailout package by thawing credit availability for house owners, modest business concerns and the harangued local governments – all suffering from the foreclosure fallout.
The funds available from TARP are half the original amount – $350 billion. The lawmakers and others overseeing the utilization of the funds are strident in their criticism that the first instalment of the funds has not been properly used by the Bush administration and banks have not been made accountable for the funds they have got.
The Congressional panel seeing to the use of the bailout money said that the lawmakers should “take a very hard look” at the manner in which the banks have made use of the money. The head of the panel was pleased with the first steps Obama’s team is taking in defining the purpose of the programme. Although the Obama group has not given out any details but the very fact that the main priority is proper management of the balance bailout funds, has won the support from the Congressional panel.
Timothy Geithner is the future Treasury secretary as chosen by Obma. He is planning on a “comprehensive set of investment principles”. An official who did not disclose identity said that the plans have not yet been completed but the economic team is working hard to target measures that will stop the flood of foreclosures that continue to plague the nation without signs of abatement. Tougher conditions will be placed on the financial bodies that take the money. It will include restrictions on compensations for executives. Geithner will be facing a confirmation hearing of the Senate soon, wherein in all probability he will be extensively questioned about the steps he plans to take regarding TARP funds.
Within few days Obama will be sworn in as the 44th President of America. The task of managing the balance amount of TARP funds will be in the hands of his administration.
Elizabeth Warren is a law professor from Harvard. She said, “These are powerfully important initiatives. I’m very pleased that the incoming administration is focused on these issues.” She did not have any specific suggestions to make about the thawing of the credit freeze but added, “It’s going to take a variety of tools. They may have to move through multiple approaches.”
