Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Lobbyists Gobbling Up $700B Bailout

There's not much left as everyone fights for piece of shrinking pie

By Jason Farago,  Newser Staff

Posted Nov 12, 2008 7:51 AM CST
Email

(Newser) – That $700 billion allocated in this fall's federal bailout sounded like a lot of money—but after a feeding frenzy led by Washington lobbyists, there's not much cash left over, reports the New York Times. Of the first tranche of $350 billion, only $60 billion remains uncommitted, and everyone from banks to insurers to a Hispanic plumbers' organization is angling for a piece.

The lobbying effort worries bankers, who fear that the battle for Treasury funds will undermine the bailout's original intention—stabilizing the financial system. What's more, Barack Obama has signaled that he might allow the floundering auto industry to apply for funding, further draining resources. But at Treasury the phone continues to ring off the hook, leading one official to lament, "This must have been how the Politburo felt."

Neel Kashkari, the Treasury Department's assistant secretary for financial stability, speaks during a news conference, Tuesday, Nov. 11, 2008, in Washington.
Neel Kashkari, the Treasury Department's assistant secretary for financial stability, speaks during a news conference, Tuesday, Nov. 11, 2008, in Washington.   (AP Photo/Haraz N. Ghanbari)
K Street in Washington, the epicenter of corporate lobbying.
K Street in Washington, the epicenter of corporate lobbying.   (©NCinDC)
An AIG office building is shown in the Woodland Hills area of Los Angeles, Monday, Nov. 10, 2008.
An AIG office building is shown in the Woodland Hills area of Los Angeles, Monday, Nov. 10, 2008.   (AP Photo/Nick Ut)
In this May 19, 2008 file photo, Treasury Secretary Henry Paulson watches as President Bush speaks to reporters in the Oval Office of the White House in Washington.
In this May 19, 2008 file photo, Treasury Secretary Henry Paulson watches as President Bush speaks to reporters in the Oval Office of the White House in Washington.   (AP Photo/Charles Dharapak, file)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

The bailout must be earned
Los Angeles Times

AIG comes cap in hand, again
Wall Street Journal Subscription

 
lobbying • Treasury Department • lobbyists • lobbying blitz • bailout • Wall Street bailout

More Newser Stories

Treasury to Sell Off $142B in Toxic Assets, Make Billions

Taxpayers Will Score $12B on Citigroup Bailout: Treasury

Politics Played Major Role in Bailout Choices

Citigroup to Repay $20B in TARP Loans

Treasury: Relax, TARP Cost Trimmed by $200B
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne