Paulson says Treasury will broaden reach to include non-bank financial firms and seek out private capital to match U.S. funds. EMAIL | PRINT | S
Paulson says Treasury will broaden reach to include non-bank financial firms and seek out private capital to match U.S. funds.
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NEW YORK (CNNMoney.com) -- Treasury Secretary Henry Paulson said Wednesday that the government would broaden the reach of its $700 billion bailout plan to support non-bank financial institutions that provide consumer credit, such as credit cards and auto loans.
In this second stage of the bailout, officials also hope to attract private capital, possibly through matching investments, to give the government's injections more heft.
Paulson also said the government is no longer planning to buy troubled mortgage assets, the original goal of the plan. Therefore, it must come up with new ways to help homeowners and slow the tide of foreclosures, which it had hoped to do once it owned the troubled loans.
