President-elect Barack Obama listens to a question at a news conference in Chicago, Wednesday, Dec. 3, 2008. (AP Photo/Charles Dharapak)
(AP)Earlier this week, Obama was asked whether he worried that Treasury Secretary Henry Paulson might begin spending the next installment of the money before he assumes the presidency. Obama demurred.
"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 that money's going to be used up," he told reporters at a Chicago news conference Wednesday.
Obama did stress that a significant component of the fund should be used to reduce the number of foreclosures. But he did not specify a particular remedy.
He also declined to take a stand in a debate over the source of money for an auto loan package. The dispute has divided Democrats and hindered progress on assistance for the industry. At issue is whether to take money from the $700 billion designated for the financial sector or to take it from a previously approved loan aimed at manufacturing more energy efficient cars.
"I think it's premature to get into that issue," Obama said at the conference.
Presidents-elect typically spend the transition period assembling their cabinets, their White House staff and preparing to take the reins of power. But this transition is occurring at an extraordinary time, with bad economic news mounting by the day and with one of the country's major industries begging for a hand to keep from collapsing.
Two Democratic senators involved in trying to salvage the auto companies have said Obama could help move the process along and should become more engaged.
"The Obama team has to step up," Sen. Christopher Dodd, chairman of the Senate Banking Committee and one of the lead negotiators, said Nov. 21 in Hartford, Conn. "In the minds of the people, this is the Obama administration. I don't think we can wait until January 20."
Two days later, Sen. Carl Levin of Michigan, a point man in helping his state's main industry, called on Obama to help resolve the dispute over money for the auto loan package.
Do you have more information about this topic? If so, please click here to contact the editors of ABC News.
