Obama Has New Plans for TARP

By Jennifer Parker

Jan 9, 2009 7:34am

As questions swirl today about where $350-billion of taxpayer TARP money was spent, President-elect Barack Obama is preparing to take control — or at least a request for control — over that second $350-billion in the TARP rescue fund.

And the Obama team wants to change the program dramatically.

I spoke with two Obama aides this morning who said that they expect that much more of the second $350-billion will go toward preventing home foreclosures, consumers, small businesses, and municipalities.

The president-elect also wants to put new controls in on the funding that is going to the banks.

The Obama administration is going to try to get a lot of the answers about how that first money was spent.

The Obama team believes that the first $350-billion was essential, but that it could have been better spent.

So there will be a pretty dramatic change to the program. 

I’m going to be talking to Obama about this and more in our exclusive interview airing Sunday morning on "This Week."

–George Stephanopoulos

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