WSJ reports the Treasury Department has committed nearly $10 billion more than the $350 billion Congress has authorized to date for the financial-sector rescue package, which could constrain how the incoming Obama administration deploys the rest of the fund. Treasury's announcement Monday that it is directing $6 billion to auto-finance company GMAC LLC brought to $358.4 billion the total funds from the Troubled Asset Relief Program that have been pledged to a variety of programs and guarantees. That suggests Treasury is tapping into the second half of the $700 billion set aside in October before it has been released by Congress. "They are pushing the envelope here," said Sen. Bernie Sanders, I-Vt., a critic of the bailout. "What they are trying to do is create a situation to put pressure on President-elect Barack Obama and the Congress to provide the next $350 billion."

DigiTimes reports LCD panel makers are expecting panel prices to return to cash cost level in February 2009, as inventory levels are falling below minimal levels and system makers will need to increase their orders in the new year to pick up their levels, according to market sources. LCD panel makers estimate that second-tier system makers will begin accepting a price increase for monitors and notebook panels starting from mid-January 2009 as inventory levels will be too low. First-tier system makers will wait until February before accepting a price increase, the sources noted. Global LCD monitor inventory was about 4.5 million units in November and is estimated to drop to 2.5 million units in December. Panel makers estimate that inventory will drop to about 100,000-200,000 units in January 2009 if it is not replenished, which is only enough for only one day, the sources explained. For notebook panels, while inventory in November remained at about four million units, December inventories are estimated to drop to 2.5 million units and the inventory will drop to empty in January 2009, the sources added.

GMAC Financial Services will immediately resume auto financing for a broader spectrum of U.S. customers as a result of expanded access to funding as a bank holding company. The co will modify its credit criteria to include retail financing for customers with a credit bureau score of 621 or above, a significant expansion of credit compared to the 700 minimum score put in place two months ago. GMAC's application to become a bank holding company was approved by the Federal Reserve Board of Governors on Dec. 24, 2008. The co also announced that it received an investment from the U.S. Treasury Department as part of the Troubled Assets Relief Program. At this time, GMAC will not finance higher risk transactions characterized by a credit bureau score of 620 or below. The co will utilize both GMAC Bank and funding from other sources to resume its traditional spectrum of prime-based credit, appropriately pricing for risk and requiring down payments where necessary.

firm believes banking industry is in a great deal of trouble at the moment, with approximately 36% of the industry's assets involved in residential real estate. They note that industry is currently involved in the repricing of its assets. As part of this adjustment, households are failing to meet their mortgage commitments causing unusually high losses in a number of types of residential real estate loans from construction credits to home equity loans. Moreover, firm says the overall financial industry is also undergoing a period of adjustment due to shocks in the capital markets arena. Firm believes the economic stress will cause more than residential loans to fail so the likelihood is that bank loan losses are going to climb higher.