Treasury Secretary Paulson Says Government Won't Buy Troubled AssetsKen Sweet
Fox Business
[excerpt]
Treasury Secretary Henry Paulson said Wednesday that original plan to purchase distressed mortgage assets from Wall Street firms is not the best use of the $700 billion financial rescue package, and officials will now focus on direct capital injections into the struggling financial firms.
This comes after Paulson said buying troubled assets -- the plan originally advertised to the public -- would take too much time in a financial crisis that continues to test the patience of investors, government and the public.
In his statement, Paulson said that nonbank financial institutions, including companies that deal with credit cards, auto loans and student loans, may be eligible for direct capital injections. Companies such as American Express (AXP: 20.53, -1.87, -8.34%), which is one of the country's largest credit card companies, is reportedly seeking $3.5 billion in fresh capital from the government, according to The Wall Street Journal.
“I determined that the most timely, effective step to improve credit market conditions was to strengthen bank balance sheets quickly through direct purchases of equity in banks,†Paulson said.
The remarks were made in a press conference scheduled to update the public and Wall Street on the progress the bailout plan.
Paulson said that the original TARP program, which was crafted in consultation with Congress to purchase troubled assets directly from banks, did not address the financial crisis with the immediacy needed.
“It was clear to me by the time the bill was signed … we needed to act quickly and forcefully, and that purchasing troubled assets -- our initial focus -- would take time to implement and would not be sufficient given the severity of the problem,†Paulson said.
<snip>
LinkOh FFS!! Does
anyone speak the friggin' truth anymore about what the hell is going on???
