WASHINGTON (AP) -- Treasury Secretary Henry Paulson envisions using different methods to price a range of rotten securities that banks would unload to the government.
Paulson acknowledged that pricing the bad debts will be tricky.
Under the $700 billion financial bailout plan being considered by Congress and the Bush administration, the government would buy those dodgy debts, with the goal of putting financial institutions in a better position to raise capital and lend more freely. Unclogging credit problems is critical to helping the faltering economy get back on its feet.
"We asked for broad-based authorities to use a series of market-based approaches. We'll be dealing with different approaches in different situations," he said.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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