The federal government may be the next too-big-to-fail institution to accept federal bailout money.
The Obama administration, struggling to keep the federal budget deficit from spiraling out of control, could accept up to $210 billion in TARP funds in a bid to cut its debt. The government won't take all of the remaining TARP kitty, which is growing as other recipients race to return their bailout money to get out from under the onerous thumb of the government, especially that nasty pay czar Kenneth Feinberg.
On the bright side, no one in government makes nearly enough to run afoul of pay restrictions, and the government never has to pay itself back.
"While we are not happy to have to contemplate this measure, the deficit is such that all options must be considered," White House Press Secretary Robert Gibbs said at today's daily press briefing. "Programs like TARP have put us so deeply in debt that we may have no choice but to resort to TARP funds."
White House Aims to Cut Deficit With TARP Cash [WSJ]