03:49 PM
Paulson Scraps Bailout Plan to Buy Troubled Assets
Treasury Secretary Henry Paulson said today he plans to use the second half of the $700 billion financial rescue program to help relieve pressures on consumer credit, scrapping an effort to buy troubled mortgage assets.
"Illiquidity in this sector is raising the cost and reducing the availability of car loans, student loans and credit cards," Paulson said today in a speech at the Treasury in Washington. "This is creating a heavy burden on the American people and reducing the number of jobs in our economy.''
Paulson said the bailout "is working" and has "clearly helped stabilise" the financial system.
But he added that there were still many challenges ahead and market turbulence was likely to continue for some time.
For the full text of Paulson's speech, check out https://www.cnbc.com/id/27678905. Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio