To TARP or Not to TARP?

January 13 - On Monday, President Bush - at the request of President-elect Obama - formally requested that Congress release the second $350 billion in funds from the Troubled Assets Relief Program (TARP).  Congressional leadership indicated that while they would support the release of the funds, they may do so with additional strings attached.  Speaker Pelosi expressed support for a bill introduced by Chairman Frank of the House Financial Services Committee designed to tighten oversight of TARP funds, and Senate Banking Chairman Dodd said that while there was no Senate companion bill, it would be sufficient for him to get assurances from Obama's team that it would use the second half of the TARP funds to pursue other rescue measures.

However, rank-and-file members may or may not support releasing TARP monies due to anger over how--and to whom--the Bush Administration has allocated the funds.  The Senate may hold a "vote of disapproval" in order to prevent the President from getting at the funds, and it remains unclear whether the House of Representatives would support the release with or without the Frank legislation.  House Minority leader Boehner has said he will vote against releasing the funds, and Senate Minority Leader McConnell has expressed similar reservations.