December 4th, 2009
06:43 PM ET
4 years ago

Obama leaning towards support for TARP funds to pay for jobs bill

Obama leaning towards support for TARP funds to pay for jobs bill.

Obama leaning towards support for TARP funds to pay for jobs bill.

Washington (CNN) - President Obama is leaning towards supporting a Congressional Democratic plan to craft a jobs bill by using untapped bailout funds, according to two senior officials familiar with the deliberations.

The officials stressed that no final decision has been made by the president, but they noted he is likely to flesh out more details on the emerging economic package next Tuesday during a speech at the Brookings Institution in Washington. This new package is expected to be much smaller than the original $787 billion stimulus plan because of cost concerns at a time of deep government deficits.

Democrats on Capitol Hill and at the White House are considering a jobs package that would include funding for infrastructure projects, direct lending to small businesses and aid to cash-strapped states.

Using the untapped TARP funds has become an attractive option for Democrats, because it would not increase the budget deficit since those funds are already allocated. Republicans have been attacking the president for already sharply increasing federal spending during his first year in office.

White House spokesman Robert Gibbs on Friday hinted to reporters that Obama is "likely" to discuss the use of untapped bailout funds in Tuesday's speech. "The President thinks we should and must do everything in our power to create an environment for job growth and job creation," he said.

In addition, Democrats are considering a separate emergency spending package that would increase the deficit because the money has not yet been allocated. That package would include extended unemployment benefits, COBRA health benefits for people who have lost jobs, and food stamps.

Filed under: Economy • President Obama • TARP
soundoff (54 Responses)
  1. Meka


    It's because of them, that were dealing with THIS ECONOMY. They have OUTSOURCED JOBS, INCLUDING THE "AMERICAN FLAG" . . .

    December 4, 2009 06:50 pm at 6:50 pm |
  2. Party Purity will never bring Political Power!

    TARP the one thing from the reign of King George II that does seem to have worked. It stopped us from crashing and now the banks are paying it back.

    Of course, it was actually Paulson that came up the bank bailout plan, but the shrub did approve and support the bailout bill.

    But then, what republiklan con does not support "Wallstreet welfare" for big business!

    It is just helping the average American that republiklans balk at, as they have shown us DAILY for the last 11 months. NO, NO and NO.

    December 4, 2009 06:53 pm at 6:53 pm |
  3. Mike Dallas

    You cons are giving me whiplash with these 180 degree flip flops on bank lending.

    First it was the bank's fault for giving out credit too easily, so the banks raised the standards to achieve a loan and now your whining about the banks are not making loans.

    Must just be more knee jerk reactions that cons seem to high in such esteem.

    December 4, 2009 06:57 pm at 6:57 pm |
  4. m smith

    Gee some of the banks have paid back their loans already. NO one says much about that. Wonder why . If it doesn't ad to the defecit why not?

    December 4, 2009 07:04 pm at 7:04 pm |
  5. C. Farrell, Houston, Tx

    It was Republicans who said money should be spent to bail out big business and they happily agreed. Now that the Obama administration is attempting to use returned bailout money, your tax money, to help create jobs, Republicans say NO. Where are the tea baggers on this one or was it really about the economy. Come out wherever you are and let us know where you really stand.

    December 4, 2009 07:07 pm at 7:07 pm |
  6. Bev

    We will NOT see any "real" improvement to our economy/unemployment rate--until Obama and the Democrats are booted from office in 2010 and 2012.

    Why would any business hire now..............

    -When they are now being "punished" through increased taxes for making a profit.

    -When they do not know what there taxes are going to increase to, when Bush's tax cuts expire this year.

    -When they have no idea what additional expenses they will have--and if they will be able to stay in business-–if the health care disaster passes.

    -When they have no idea what additional expenses they will have--and if they will be able to stay in business-–if the Cap and Tax energy bill passes.

    December 4, 2009 07:08 pm at 7:08 pm |
  7. Stu

    I can pretty much guarantee that any bailout money that is repaid is going to be spent as fast as it comes in too. Man, the rats just can't keep their hands off of money, can they?

    December 4, 2009 07:11 pm at 7:11 pm |
  8. JR

    Considering the fact that only 20% of the "stimulus" has been used, creating jobs seems perfect for the balance.

    Funny, that with the banks paying off the Tarp funds, you don't hear the GOP congratulating Obama on a job well done. I guess their complaints were just political and not about America after all.

    December 4, 2009 07:19 pm at 7:19 pm |
  9. Hammerer

    Right, spend more money. That always works.

    December 4, 2009 07:24 pm at 7:24 pm |
  10. Paula, IN

    Palin is a pig and a coward. If she really thinks there is a question about President's Obama's birth certificate, why doesn't she just demand it be release. I'll tell you why, because she's a coward. She'd rather start a riot and run home than stand and defend her position. She'd rather start a race war and hide behind a tree, than stand and defend herself. She also knows that she can't stay out with the looney-tunes too long, just long enough for them to buy her books, and you guessed it-run home.

    She's a coward of the worst kind. One who pits one American against another, not because she believes what's she's saying, but because it adds to her piggy bank–the coward.

    December 4, 2009 07:27 pm at 7:27 pm |
  11. WrongKindofChange

    Blah! Blah! Blah! The democrats are full of talk and little action, at least any kind that would help this country.

    December 4, 2009 07:29 pm at 7:29 pm |
  12. phoenix86

    Can't Obama quit spending and borrowing for just a minute?

    December 4, 2009 07:32 pm at 7:32 pm |
  13. jmz

    Meka- It because of libtards like you we are being taxed to death..hows was that "stimulus" for you? ya know the one that OBAMA forced thru at lightning speed...and did EVERYTHING the repubs said it would do. hows that 8% UI rate yer Bammie promised..oh thats right it dropped .2% because of the holidays but hell take credit for it anyways. NAFTA was CLINTON you idiot. The housing crisis was due to your beloved clinton and ACORN forcing banks to give loans to people that couldnt afford it because socilaists think everything should be given.Funny how whiney libtards like you continue to blame bush. I may not like bush, but he is still more of a leader out of office than your beloved obama is in office. Obama cant make a move without figuring out a way to throw it on Bush .Obama is, has been and always will be a failure!!!

    December 4, 2009 07:38 pm at 7:38 pm |
  14. Jane/Seattle

    At least something for the famous Main Street! Who gets to pay? We do! Oh, Yippie! Banks ought to pay for their fraud by releasing the homes theystole from citizens with their illegal, predatory lending. Really now! Is channelling folks to subprime loans ethical capitalism? I think not and the governments job is to protect the powerless against the whims of the powerful (Code Of Hammurabi). YooHoo, where are you on this equality thing? Credit card increases going to rise as the laws do not take effect until 02/22/09. Really Now and so easy to see just who is getting robbed and pillaged by the raiders for Capitalism! Children, the weakl, the vulnerable, the unsavy and finally, THE Taxpayers! Sickening displays of envy, greed, sloth, and all things warned of in their own Bible! I would never follow such immoral men and women into this hell!

    December 4, 2009 07:46 pm at 7:46 pm |
  15. Slider

    This is unconstitutional. It was unconstitutional for the Obama administration to oversee bankruptcy proceedings and usurp the Congress in that arena. It is just as unconstitutional to take money, borrowed from the American people for a specific purpose, and use it for different agendas.

    It was unlawful for the Treasury department to cause first-position debt holders to take less than what they were obligated to receive during Chrysler's restructuring, and to handpick creditors to enable the deal with Fiat to go through, all paid for with the lost pensions of people in Indiana.

    I stand with those in California, Michigan, and Indiana who lost their rightful property while our Treasury Department, and Federal Reserve misled, and misappropriated the American people's money.

    I also stand with the Cato Institute, and I appreciate the job they are doing to stop such unconstitutional practices by filing amicus briefs on behalf of those they feel are unjustly treated by the overburdening power of our pathetic Federal government.

    Too bad the nuts that frequent this website haven't got a clue about any of this, but then again, when you have your head in the sand, everything looks the same.

    December 4, 2009 07:47 pm at 7:47 pm |
  16. George Guadiane - Austerlitz, NY

    On this, I'm going to defer to Republicans who seem to be OUTRAGED at the idea that jobs are not coming back fast enough...

    DO WHATEVER IT TAKES, cut senate/house pay and use the savings to hire street sweepers (who will be glad to do honest, even "make work" jobs to support their families.
    A bright light appeared on America's jobs horison and Republicans/"Conservatives" jumped up to block out that light... Those people who lost their jobs are worse off, but...

    Think of this as a deadly pandemic: 11000 people "died" this week. We were expecting 125,000 to "die."
    This kind of information would be used to suggest that the end of the pandemic is in sight – that SHOULD be good news.

    One more thing, if it IS good news, shouldn't President Obama get the "credit?" After all he has been getting the blame from Republicans/"Conservatives," for losses that occurred, even before he came into office.
    OH, THAT's why this isn't good news, because President Obama isn't "allowed" to get credit for anything.

    December 4, 2009 07:47 pm at 7:47 pm |
  17. Brian from NJ

    Obama and company spent $800B with the promise that unemployment would not rise above 8.7%... it didn't work and now they want to spend even more of our money on this nonsense... and for no other reason than they are afraid for their political lives! This is criminal... and all for votes!!!

    And Meka, this mess was not created by just the GOP... the Democrats had just as much, if not more, of a hand in this.

    – Expanded CRA: Clinton
    – Fought Derivatives Regulation: Rubin
    – Deregulated the banks: Clinton
    – Fought and ignored 17 pleas from Bush to fix Fannie and Freddie: Congressional Dems
    – Took over Congressional Oversight of the Finance Industry in 2007: Democrats
    – Took sweetheart loan deals from Countrywide: Dodd
    – Ran Citigroup into the ground while making $163M: Rubin
    – Cooked Fannie's books while making $50M: Raines

    We can go on, but you get the point...

    December 4, 2009 07:50 pm at 7:50 pm |
  18. Fitz in Texas

    "That package would include extended unemployment benefits, COBRA health benefits for people who have lost jobs, and food stamps."

    I'm considering I may just stop working....that way I can stop paying into these programs and start getting these programs. What until the hard working taxpayer starts doing this. When that happens there won't be any money for these programs. The government has bleed us enough.

    December 4, 2009 07:56 pm at 7:56 pm |
  19. TCM

    Meka – you're smoking crack...unless you know anything about working (and I'm not talking about standing in line for your welfare check) shut up...!

    December 4, 2009 07:56 pm at 7:56 pm |
  20. Henepenny

    But if the president starts creating jobs, what will the RNC have to complain about? Michael Steel will be out of a job and Fox news will have to stick Hannity in the closet where he belongs.

    December 4, 2009 08:01 pm at 8:01 pm |
  21. Chicago Mob

    All that spending from the stimulus worked so well we need to do more?Tax breaks for small business would actually work but then the dems would have to admit something they loathe actually works.

    December 4, 2009 08:05 pm at 8:05 pm |
  22. Dwayne

    I like the idea of using excess TARP funds to promote jobs. It's kind of a "use or lose" scenario, so those funds should be put to good use. Hopefully Obama will have more of a long term solution for job growth, but, this is a good short-term fix to get the ball rolling.

    December 4, 2009 08:11 pm at 8:11 pm |
  23. P.Y. Los Angeles

    December 4th, 2009 6:50 pm ET


    It's because of them, that were dealing with THIS ECONOMY. They have OUTSOURCED JOBS, INCLUDING THE "AMERICAN FLAG" . . .

    WAW,I did not know Clinton was Republican.
    If I remember correctly NAFTA was His baby,so,please put blame were it belong ,and try to learn History.

    December 4, 2009 08:21 pm at 8:21 pm |
  24. all the news that's fit to omit

    Wait, this lying fraud said if we cut him a check for almost a trillion dollars we would get back 3 million jobs and the unemployment would not go above 8 percent????

    The FACTS are that we gave him the dough and we have LOST 3 MILLION JOBS.

    He also said that he has saved or created a few thousand jobs, problem is those jobs were LIES in districts that ARE NOT REAL, but you sheep excuse every factual statement with the same tired excuses.

    Now he wants to spend more money to "create more phony jobs in phony districts"?

    You progressive nitwits want to give him more money to create jobs?

    The only job this never worked a day in his life fraud has ever made are the "gubment" jobs to his hack friends.

    One segment is expanding, GUBMENT, congrats progressives, you hired a fraud.

    December 4, 2009 08:21 pm at 8:21 pm |
  25. Eric

    An affirmative action quality solution from an affirmative action president.

    December 4, 2009 08:23 pm at 8:23 pm |
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