Obama, Paulson at Stalemate on Bailout Funds

By Gabriel Winant,  Newser User
Posted Dec 4, 2008 10:30 AM CST
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)
camera-icon View 2 more images

(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."