next step in the bailout

Bush agrees to ask for financial bailout funds

WASHINGTON – President-elect Barack Obama advised President George W. Bush on Monday that he intends to tap the remaining $350 billion in financial sector rescue funds and Bush agreed to submit the notification on his behalf to Congress, the White House said.

Congress would have 15 days to reject the request.

The request would give Obama not only the opportunity to get access to the money, but also to change its goals and conditions. The Bush administration's handling of the first $350 billion has come under widespread criticism in Congress and from watchdog organizations.

Obama and his economic team have signaled that he was eager to use the money to help reduce the number of mortgage foreclosures and that he wanted to place greater restrictions on institutions that receive the funds. The move comes as Democrats in the House of Representatives prepare to act on legislation that has some of the same aims.

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