AP:   Breaking  |  Alerts  |  World  |  US  |  Politics  |  Business  |  Entertainment  |  Life  |  Science  |  Odd  |  Sports  |  Tech
Paulson says bold approach needed to end crisis
Sep 19 09:18 AM US/Eastern
By JEANNINE AVERSA and JULIE HIRSCHFELD DAVIS
Associated Press Writers
Share on Facebook Bookmark and Share
WASHINGTON (AP) - Treasury Secretary Henry Paulson on Friday sketched the outlines of a bold approach to confront the nation's financial crisis. "We're talking hundreds of billions" of dollars, he said.

Paulson said he would work through the weekend with congressional leaders to reach agreement on a plan that would address the root problems of the financial crisis gripping the country.

"This needs to be big enough to make a real difference and get to the heart of the problem," he told reporters at the Treasury Department.

Paulson said that the new troubled-asset relief program that he wants Congress to enact must be large enough to have the necessary effect while protecting taxpayers as much as possible.

"I am convinced that this bold approach will cost American families far less than the alternative—a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion," Paulson said.

"The financial security of all Americans ... depends on our ability to restore our financial institutions to a sound footing," Paulson said.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP)—Treasury Secretary Henry Paulson says the bold approach needed to take troubled assets off the books of financial organizations will be expensive but doing nothing would cost far more.

Paulson said Friday that he planned to work through the weekend with congressional leaders to reach agreement on a plan that would address the root problems of the financial crisis gripping the country.

Speaking to reporters at the Treasury Department, Paulson said that the new troubled-asset relief program that he wants Congress to enact must be large enough to have the necessary impact while protecting taxpayers as much as possible.

"I am convinced that this bold approach will cost American families far less than the alternative—a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion," Paulson said in a prepared statement.

"The financial security of all Americans ... depends on our ability to restore our financial institutions to a sound footing," Paulson said.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.