Bush Seeks Final Bailout Funds at Obama's Behest

"I remain disappointed about the way TARP has been managed and how its resources have been spent over the last several months," he said. He added: "I will oppose the release of these taxpayer funds when the matter is considered on the House floor."

In this photograph provided by ABC News, President-elect Barack Obama is interviewed by George...

In this photograph provided by ABC News, President-elect Barack Obama is interviewed by George Stephanopoulos, left, during the taping of "This Week with George Stephanopoulos" Saturday, Jan. 10, 2009 at the Newseum in Washington. (AP Photo/This Week, Lauren Victoria Burke)

(AP)

Even Democratic allies have been wary.

Sen. Barbara Boxer, D-Calif., said she told Obama Monday morning that she had been hesitant, but liked the changes he was proposing.

"I'm leaning in favor after speaking with him," she said. "I mean I have to hear what he says."

At his news conference Monday, Bush defended his handling of the first $350 billion.

"I readily concede I chucked aside some of my free market principles when I was told by chief economic advisers that the situation we were facing could be worse than the Great Depression," the president said.

But he credited the program so far with improving the credit environment, saying that "lending is just beginning to pick up."

Congress approved the program in October, authorizing $700 billion to assist the financial industry.

The current administration has already committed the first $350 billion, using it to inject capital into banks with few strings attached and to bail out ailing financial companies considered too big to fail without further damage to the economy. A small portion of the money has gone to automakers General Motors Corp., and Chrysler LLC.

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Associated Press Writers Julie Hirschfeld Davis and Erica Werner contributed to this report.

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