Obama, Paulson at Stalemate on Bailout Funds

By Gabriel Winant, Newser User

Posted Dec 4, 2008 10:30 AM CST

(Newser) – The incoming administration and the outgoing Treasury Department are at a standoff over the second half of the $700 billion bailout, reports the Wall Street Journal. Whether Barack Obama is reluctant to overstep or wary of being associated with Bush administration policies isn't clear, but the Journal reports that unidentified "Treasury officials have grown frustrated with the Obama transition team's unwillingness to engage in specifics."

"Until Secretary Paulson indicates publicly that he's drawing down the second tranche, the second half of the TARP money, it would be speculation on my part to suggest that [the first tranche of] that money is going to be used up," Obama said yesterday. Without citing sources, the Journal reports, "Many within Treasury believe the next administration is trying to keep its distance."

President-elect Barack Obama, left, and Treasury Secretary-designate Timothy Geithner, right, leave a news conference in Chicago, Monday, Nov. 24, 2008. (AP Photo/Pablo Martinez Monsivais)

President-elect Barack Obama listens to a question at a news conference in Chicago, Wednesday, Dec. 3, 2008. (AP Photo/Charles Dharapak)

Henry Paulson speaks about China to the World Affairs Council in Washington, Tuesday, Dec. 2, 2008. (AP Photo/Gerald Herbert)

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Obama Stimulus Plan Balloons to $500B

Paulson, too, mulls more aggressive action, tapping bailout funds

Stimulus Slashes Bank Bonuses

Package bans cash bonuses for bailed-out firms' high earners

C'mon, Mr Prez, Nobody Will Run Bank for $500K

Obama, after pledge to be above the noise, falls prey to it instead

Paulson: We're Doing the Right Thing

Bush administration 'creatively working' on financial crisis

Feds Aim to Push Bailout Beyond Traditional Banks

Finance-related firms working with Treasury, which also has eye on Obama transition

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