Geithner and More Money for the Banks

Congress seems unwilling to pony up more dough.

By SHARE

Even though most Americans may not have attended a Tax Day tea party yesterday, most of them are probably none too pleased about the bank bailout.That displeasure is reflected in the current unwillingness of Congress, even plenty of Democrats, to send any more dough their way. Yet the White House believes more taxpayer capital will likely be needed beyond whatever TARP money is still left. So what are Treasury Secretary TimGeithner's options. I think this about covers it:

1) Devote less money to the PPIP and TALF programs.

2) Free up money by using non-TARP money for the auto and housing bailouts.

3) Use the FDIC, which is attempting to expand it credit line to $500 billion, as a source of bailout funds.

4) Encourage, at some point, banks to repay their TARP injections so the money can be recycled. Bottom line: Unless the economy explodes upward, the White House will ask for more funds. Should be a fun battle to watch.