Tsy's Paulson Says White House Ready to Request TARP Funds for Obama Administration

Treasury Secretary Henry Paulson confirmed today that the White House has requested the remaining $350 Billion in TARP funds on behalf of the Obama administration.

Paulson's remarks confirmed earlier one's made by George W. Bush in his final press conference as president.

In an interview with CNBC, Paulson said he expects the U.S. economy will go through a difficult period in 2009. He refused to comment whether economic conditions would get worse, adding that a gradual recovery would be seen in market sentiment as tensions ease in the mortgage market.

According to a Wall Street Journal article published on Monday, Paulson's successor Tim Geithner wants to ensure that financial markets are not ruffled by a potential vacuum.

Paulson also called on banks not to hoard capital, adding that he does not believe in telling banks who to lend to.

By Steve Stecyk and edited by Sarah Sussman
©CEP News Ltd. 2009