This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7631500.stm
The article has changed 9 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| Paulson eyes rescue plan backing | Paulson eyes rescue plan backing |
| (about 1 hour later) | |
| US Treasury Secretary Henry Paulson has urged a key Congressional hearing not to delay a $700bn (£382bn) bail-out of the US banking system. | |
| Mr Paulson told the Senate Banking Committee that the personal savings of US citizens are at risk if the rescue plan is not implemented. | |
| The Treasury wants unlimited authority to buy back the bad debt that is clogging the financial markets. | The Treasury wants unlimited authority to buy back the bad debt that is clogging the financial markets. |
| Fed chairman Ben Bernanke has backed him by saying urgent action is needed. | |
| Opening the hearing Democrat chairman of the committee, Chris Dodd, said: "We all recognize the gravity of the situation." | Opening the hearing Democrat chairman of the committee, Chris Dodd, said: "We all recognize the gravity of the situation." |
| He added that the "economic maelstrom" was caused by a combination of "private greed and public regulatory neglect". | He added that the "economic maelstrom" was caused by a combination of "private greed and public regulatory neglect". |
| The continued turmoil in US financial markets... has led US Secretary Treasurer Henry Paulson to seek a comprehensive solution Q&A: US bail-out plan | The continued turmoil in US financial markets... has led US Secretary Treasurer Henry Paulson to seek a comprehensive solution Q&A: US bail-out plan |
| Doubts over how soon the rescue plan can be applied have emerged over the past days from both the Democrats and Republicans. | Doubts over how soon the rescue plan can be applied have emerged over the past days from both the Democrats and Republicans. |
| Under the draft Treasury plans, financial institutions with "significant operations in the US" are eligible to sell or auction their bad debts to the Treasury fund. | Under the draft Treasury plans, financial institutions with "significant operations in the US" are eligible to sell or auction their bad debts to the Treasury fund. |
| That would mean a number of British banks could sell their "toxic assets" to the Treasury-owned bank via an auction. | That would mean a number of British banks could sell their "toxic assets" to the Treasury-owned bank via an auction. |
| The fund will aim to sell off these mortgage-related debts in the future when, it says, their value may have risen. | The fund will aim to sell off these mortgage-related debts in the future when, it says, their value may have risen. |
| 'Decisive action' | 'Decisive action' |
| "We saw market turmoil reach a new level last week, and spill over into the rest of the economy," Mr Paulson said. | |
| "We must now take further, decisive action to fundamentally and comprehensively address the root cause of this turmoil." | "We must now take further, decisive action to fundamentally and comprehensively address the root cause of this turmoil." |
| He added: "When the financial system doesn't work as it should, Americans' personal savings, and the ability of consumers and businesses to finance spending, investment and job creation are threatened." | |
| Ben Bernanke's testimony followed Mr Paulson's. | |
| He has defend the Federal Reserve's action to save insurer AIG from collapse. | |
| "A disorderly failure of AIG would have severely threatened global financial stability and, consequently, the performance of the US economy," he said. | |
| He then said that despite the efforts of the Federal Reserve, the Treasury, and other agencies, that global financial markets remain under extraordinary stress. | |
| 'Bold approach' | 'Bold approach' |
| "Action by the Congress is urgently required to stabilise the situation and avert what otherwise could be very serious consequences for our financial markets and for our economy," he added. | |
| President Bush has been closely involved with the proposed rescue plan. | President Bush has been closely involved with the proposed rescue plan. |
| "This is not a step that we have taken lightly. It's a very big plan. It was something we felt we had no choice but to do at this point," White House spokesman Tony Fratto said in a conference call with reporters. | "This is not a step that we have taken lightly. It's a very big plan. It was something we felt we had no choice but to do at this point," White House spokesman Tony Fratto said in a conference call with reporters. |
| "But we're going to move forward with it with great confidence that it will have the impact that we expect it to have and to allow growth to continue in this economy," he said. | "But we're going to move forward with it with great confidence that it will have the impact that we expect it to have and to allow growth to continue in this economy," he said. |
| Some members of Congress are uneasy at the thought of the taxpayer taking on hundreds of billions of dollars of debt. | Some members of Congress are uneasy at the thought of the taxpayer taking on hundreds of billions of dollars of debt. |