Agenda: The TARP and the stimulus

The Wall Street Journal writes, “The Senate cleared the way for President-elect Barack Obama to access the second half of the $700 billion financial rescue fund, alleviating some concern on Wall Street by setting the stage for another infusion into the weakening financial sector. To overcome political objections, the incoming Obama administration pledged to spend $50 billion to $100 billion on a "sweeping" foreclosure-prevention effort. It also said it would impose tougher restrictions on banks that receive government aid, including requirements on banks to lend money, increased restrictions on executive compensation and curtailed dividend payments for some firms.” More: “The Senate voted 52-42 to defeat a "resolution of disapproval" designed to block release of the money. Both chambers needed to approve the resolution for it to succeed, rendering any House vote irrelevant. The total was closer than the 74-25 Senate vote in October that authorized the Troubled Asset Relief Program, reflecting ... (link)