Obama says reviewing TARP, eyeing homeowner relief

CHICAGO (Reuters) - President-elect Barack Obama said on Wednesday he is reviewing whether taxpayers are getting maximum bang for the buck from a $700 billion government financial rescue package and indicated particular interest in helping prevent mortgage foreclosures.

"My team has been reviewing very carefully how the TARP (Troubled Assets Relief Program) program has proceeded," he said at a briefing.

"We're seeing some areas where we can be doing better in making sure that this money is ... effective in shoring up our financial markets," he said, citing a Government Accountability Office study that found flaws in how the program has been handled.

Obama said steps to help strapped homeowners could provide a boost to the broader economy.

"We've got to start helping homeowners in a serious way to help prevent foreclosures," he said.

"Deteriorating assets in the financial markets are rooted in the deterioration of people being able to pay their mortgages and stay in their homes," Obama said.

"If we help Main Street, ultimately, we're going to help Wall Street, and that's an area I'm particularly interested in," he added.

(Reporting by Caren Bohan and Jeff Mason; Writing by Mark Felsenthal; Editing by Neil Stempleman)