Pelosi threatens hold on bailout funds

President Bush will have to pledge to do more to avert home
foreclosures if he wants the second half of the $700 billion for bailing out
the financial industry, House Speaker Nancy Pelosi (D-Calif.) said
Monday.

{mosads}Pelosi said that mortgage forbearance was key to passing the
legislation in Congress, but that the administration has neglected to implement
it.

“It’s been totally ignored by the administration,” Pelosi
said during her weekly news conference. “Absolutely nothing has been done to
respect that part of legislation.”

All but about $15 billion of the first slice of the Troubled
Assets Relief Program (TARP) has been allocated by the Treasury Department.
Pelosi said she expects Bush to use some of that money toward keeping the U.S.
auto industry functioning, because the Senate rejected a plan to shift money for
re-tooling plants to a bailout.

“They know bankruptcy is not an option,” Pelosi said, “and
that TARP funds are the only recourse.”

But press reports indicate that the administration may have
a bigger plan in mind, which would require the second $350 billion. That, in
turn, requires the consent of Congress.