Financial News - Bernard Madoff Remains on Bail - YourDailyFinance.com

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In another development of the Bernard Madoff case, a New York judge has ruled Madoff is to remain free on bail; rejecting the motion by prosecutors to rescind his bail for mailing more than $1mm in jewelry to family and friends last month. In a separate decision, another magistrate allowed an extension for the deadline to indict Madoff until February 11th. The decision leaves Madoff free on bail for at least another month, provided he doesn't violate conditions of his bail. On yet another motion, a bankruptcy judge ruled that the trustee in the case can issue subpoenas to investigate the flow of money in the investment fund run by Madoff. U.S. Bankruptcy Judge Burton Lifland gave permission to trustee, Irving Picard, to subpoena witnesses. The trustee is overseeing the liquidation of the fund for the bankruptcy court.

Seeking to reassure wary lawmakers, President-elect Barack Obama said Monday he will change the way the second half of the $700 billion financial bailout fund is spent, focusing some of the relief on housing and small businesses.
At President-Elect Obama's request, President Bush has requested the second half of the $700 billion financial-rescue fund to be released as US banks are expected to report their first overall quarterly loss since 1990. Treasury Secretary Paulson originally promised the money would be used to buy mortgage-related securities whose falling values have clogged credit markets and brought many financial institutions to the brink of failure.
However, Obama's choice for National Economic Council director, Larry Summers, said the new president intends to broaden the goals of the remaining bailout package and impose tougher restrictions and oversight on how the money is spent.
Summers told House and Senate leaders in a letter from the transition team that Obama intends to use the Troubled Asset Relief Program to help community banks, small businesses, consumers and homeowners as well as large financial institutions. It reads that Obama intends to launch a "sweeping effort" to mitigate foreclosures.

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