Jan. 12 (Bloomberg) -- House Financial Services Committee Chairman Barney Frank said he has “some doubt” Congress will approve his legislation setting terms for releasing $350 billion of financial-rescue funds because the White House’s mishandling of the first half of the money has created a lack of confidence.

“The Bush administration did such a bad job of administering the first $350 billion,” said Frank, a Massachusetts Democrat, in a Bloomberg Television interview today. “There’s a great deal of anger in the country” over the way the funds were handled.

Frank on Jan. 9 proposed terms for releasing the remaining funds, seeking as much as $100 billion to stem foreclosures and requiring companies to report quarterly on how they are spending the money. The measure reflects lawmakers’ criticism that President George W. Bush failed to set conditions for funds distributed after Congress approved the rescue plan in October.

The House of Representatives will vote on the proposal this week, Frank said. Failure to approve the plan could have a “negative” impact on markets, he said.

President-elect Barack Obama today requested that the Bush administration ask Congress for the remaining $350 billion in rescue funds while his team drafts proposals to stem mortgage foreclosures. Bush said today during his final White House news conference that he is willing to act on Obama’s behalf.

Representative Spencer Bachus, the top Republican on the House Financial Services Committee, questioned the government’s ability to fix the economy with taxpayer funds.

“Many Americans are struggling to make ends meet, which is exactly why I feel we should proceed with caution and deliberation before burdening the American taxpayer with an additional $350 billion bill,” Bachus of Alabama said in a statement. “The popular view point is that only government intervention can right the ship. Many others are skeptical of the ability of government to fix things.”

To contact the reporter on this story: Alison Vekshin in Washington at avekshin@bloomberg.net; Peter Cook in Washington at pcook6@bloomberg.net.

Last Updated: January 12, 2009 17:59 EST