US Treasury unveils proposed massive financial sector bailout
The US Treasury late on Saturday unveiled details of the government's unprecedented 700-billion-dollar bailout plan for the US financial sector.
By Agencies |
WASHINGTON: The US Treasury late on Saturday unveiled details of the government's unprecedented 700-billion-dollar bailout plan for the US financial sector.
"The Treasury Department has submitted legislation to the Congress requesting authority to purchase troubled assets from financial institutions in order to promote market stability, and help protect American families and the US economy," the department said in a statement.
Revealing details of the plan that President George W. Bush's administration sent to Congressional leaders late Friday, the Treasury said it was seeking the "authority to issue up to 700 billion dollars of Treasury securities to finance the purchase of troubled assets."
The Treasury said the plan calls for purchases of residential and commercial mortgage-related assets, which may include mortgage-backed securities and whole loans.
Under the plan "as of Saturday afternoon," the Treasury statement said, highlighting the fluidity of the crisis, Treasury Secretary Henry Paulson would have the authority, in consultation with Federal Reserve chairman Ben Bernanke, "to purchase other assets, as deemed necessary to effectively stabilize financial markets"
"Removing troubled assets will begin to restore the strength of our financial system so it can again finance economic growth," the Treasury said.
"The Treasury Department has submitted legislation to the Congress requesting authority to purchase troubled assets from financial institutions in order to promote market stability, and help protect American families and the US economy," the department said in a statement.
Revealing details of the plan that President George W. Bush's administration sent to Congressional leaders late Friday, the Treasury said it was seeking the "authority to issue up to 700 billion dollars of Treasury securities to finance the purchase of troubled assets."
The Treasury said the plan calls for purchases of residential and commercial mortgage-related assets, which may include mortgage-backed securities and whole loans.
Under the plan "as of Saturday afternoon," the Treasury statement said, highlighting the fluidity of the crisis, Treasury Secretary Henry Paulson would have the authority, in consultation with Federal Reserve chairman Ben Bernanke, "to purchase other assets, as deemed necessary to effectively stabilize financial markets"
"Removing troubled assets will begin to restore the strength of our financial system so it can again finance economic growth," the Treasury said.
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