TARP Money May Help Fund Financial Reform Legislation

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Source: CNBC

Lawmakers are now considering ending the TARP program early and using the money to help fund the new financial overhaul bill, CNBC has learned.

The proposal is being weighed as Democrats scramble to save the bill, whose final approval is in jeopardy because of objections to $20 billion in new bank fees and taxes that was inserted into the bill at the last minute to pay for other measures in the legislation.

Sen. Christopher Dodd, one of the main architects of the bill, confirmed that such a move is being considered.

As reported earlier by CNBC, Democrats have been forced to consider changing the bank tax in order to save the legislation.

The bank fee—which would apply to large financial institutions and hedge funds with over $10 billion in assets under management—threw the passage of the financial overhaul bill into doubt when Senator Scott Brown (R-Mass) said he would vote against the bill if it amounted to a new tax. He said he feared the fee would be passed on to bank customers.

Democrats are considering re-opening the House-Senate conference that reconciled the bills passed by each house to adjust the language to satisfy Brown’s concerns.

Read more: http://www.cnbc.com/id/37999997