Obama team to toughen TARP in seeking last $350 billion

WASHINGTON (Reuters) - President-elect Barack Obama will seek greater transparency for the $700 billion financial industry bailout as well as direct his staff to ensure the money flows to smaller banks and businesses, his economic adviser said on Monday.

Obama will also direct his incoming Treasury Department to seek stricter limits on compensation for chief executives and dividends by companies receiving the aid, incoming National Economic Council director Lawrence Summers said in a letter to Congress.

(Reporting by Jeff Mason and Jeremy Pelofsky, editing by Doina Chiacu)