Obama pushes for rest of bailout funds

There was an element of political theater to the day’s events. It is a foregone conclusion that Obama will be able to make use of the money as he tries to improve the economy. He could veto anti-bailout legislation if it came to that, and there are more than enough votes to uphold him.

“He said if for some reason it passed, he would veto it,” Lieberman said.

But neither the president-elect nor fellow Democrats are eager to see that unfold, fearing it could damage Obama politically even before he takes the oath of office as the 44th president next Tuesday. “I don’t think that’s the way you start out a presidency,” said Sen. Jay Rockefeller, D-W.Va.

Several Democrats said they found Obama persuasive, but added that they would wait to see his formal commitments.

“I feel much better,” said Sen. Claire McCaskill, D-Mo., noting the president-elect’s commitment to rectify several elements of the existing program.

Levin said Obama promised his administration would do a better job of accounting for how the money was disbursed, would make sure none of it went to pay for stockholder dividends, would enforce restrictions on the pay of corporate executives and more. He also said the president-elect had pledged to honor the commitments the Bush administration had made to prop up the beleaguered domestic auto industry.

It is not clear how much of the money will go toward helping hard-pressed homeowners, but in the House, Democrats were drafting legislation that would dedicate $40 billion to that effort.

“If we do not get the second $350 billion, I do not see any way that we can get substantial foreclosure relief,” said Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee. The housing measure is tentatively scheduled to come to a vote in the House on Thursday.

Rep. Spencer Bachus of Alabama, the committee’s ranking Republican, questioned whether the money was necessary. The fund is becoming “a grab-bag where people can just reach in and get taxpayer money,” he said.

But Obama’s appearance appeared to have eased concerns among the rank and file.

“There will be a new level of trust on the part of the majority and the new administration, but having experienced what we have just come through, we’re going to have to see some of this put into writing,” said Sen. Evan Bayh, D-Ind. He declared himself “open minded but skeptical.”

A larger concern was the presence of a handful of newly elected and re-elected Democrats, some of whom voted against last fall’s creation of the bailout programs, and some of whom campaigned against it.

Even so, Reid sounded confident as he spoke with reporters after the meeting with Obama.

“I think we will get the necessary votes, yes,” he said. “I feel very confident about that.”

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