Geithner Says Bailout Money Will Be Accounted For

CNN: In prepared remarks before the Senate Finance Committee Wednesday morning, Geithner called on senators to support President Obama's proposed stimulus plan. The comments come as the Senate panel prepares to consider whether to confirm Geithner as the nation's top financial officer.

"Senators, the ultimate costs of this crisis will be greater, if we do not act with sufficient strength now," Geithner's testimony read. "In a crisis of this magnitude, the most prudent course is the most forceful course."

In his testimony, Geithner - who is currently the president of the Federal Reserve Bank of New York - also advocated "aggressive action to address the housing crisis and to get credit flowing again," though he offered no specifics.

The comments come a day after President Obama took office, only to confront the worst-ever Inauguration Day selloff in the stock market.

Geithner says the bailout, that everyone affectionately calls TARP (troubled asset relief program), will have taxpayer protections.

Geithner said a revised TARP plan will contain "tough conditions to protect the taxpayer and the necessary transparency to allow the American people to see how and where their money is being spent and the results those investments are delivering."

The comments echo those made recently by another top Obama economic aide, National Economic Council chief-designate Larry Summers.

Geithner apologizes for his "careless" and "unintentional" mistake of not paying his social security taxes.

Obama Lobbying on the Hill Today

From CQ:

President-elect Barack Obama is stepping up his lobbying blitz on Senate Democrats in an effort to win the release of the second half of the $700 billion financial industry bailout fund, as a resolution that would block the funding was introduced in the chamber.

One day after the Bush administration officially asked for release of the remaining $350 billion for the Troubled Asset Relief Program (TARP), at Obama’s request, the president-elect headed to Capitol Hill to push for the funds. During a meeting with Senate Democrats at their weekly luncheon, Obama planned to stress that there will be new restrictions on how the Treasury Department can allocate the remaining funds.

He is continuing a push that began Monday with phone calls to senators on both sides of the aisle touting his plan to make changes in the bailout program (PL 110-343). There has been widespread anger in Congress over how the Bush administration has used the funds — primarily to recapitalize banks and other financial institutions. Lawmakers on both sides of the aisle want Treasury to focus more on helping struggling homeowners and businesses, and they are demanding stronger accountability for how the money is spent.

The republicans are wary and that's a good thing -- this money must be properly spent and accounted for:

“So far the incoming administration has not said whether it plans to limit the funds to their original purpose or to expand their use to help specific industries,” Senate Minority Leader Mitch McConnell , R-Ky., said on the floor Tuesday. “The taxpayers are eager to hear the new administration’s plan, and so are Republicans in Congress. We’ll hear from the incoming administration soon, we’ll be happy to listen. They’ll have a receptive, albeit cautious, audience.”

Sen. Orrin G. Hatch , R-Utah, described broad dissatisfaction with the way the first $350 billion was spent. While saying he hadn’t decided yet how he’ll vote on releasing the remaining funds, he expects the second installment to be approved.

“There has been a lot of upset about that,” Hatch said. “I haven’t made up my mind about it. I suspect that it will pass.”

Read all about it at CQ Politics.