The Washington Post’s David Cho, Peter Whoriskey and Neil Irwin report that the Treasury Dept. will expand what companies are eligible for a slice of the first $250 billion of the $750 billion financial rescue plan. Instead of merely traditional banks, these could be insurance companies and auto financing firms. The only rule seems to be that these companies have to qualify as financial firms in some way.

What does Barack Obama think about this? Well, the Treasury Dept. claims they delayed the announcement for their new bailout plan until after the election. Obama is meeting with his economic team in Chicago today.

Whether or not Treasury sees eye-to-eye with Obama, they’re disagreeing with Sheila Bair, the FDIC chairwoman. This Post piece also reports that Treasury finds her $40 billion plan to help homeowners flawed.-MB

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