Paulson to Urge Congress Not to Delay Bailout
Treasury Secretary Henry Paulson plans to urge Congress, in testimony on Tuesday, to not weigh down a proposed $700-billion financial system bailout with unrelated provisions that would delay addressing key issues.
"We saw market turmoil reach a new level last week, and spill over into the rest of the economy," Paulson said in testimony prepared for delivery to the Senate Banking Committee and obtained by Reuters. "We must now take further, decisive action to fundamentally and comprehensively address the root cause of this turmoil," he added.
He said removing illiquid assets from markets through the proposed bailout will cost taxpayers less in the long run than having credit markets fail to work. He said Congress should "avoid slowing it down with other provisions that are unrelated or don't have broad support."
Federal Reserve Chairman Ben Bernanke also told the U.S. Congress Tuesday that financial markets are under severe stress and urged immediate action to buy up hundreds of billions of dollars worth of tainted mortgage assets.
"Despite the efforts of the Federal Reserve, the Treasury, and other agencies, global financial markets remain under extraordinary stress," Bernanke said in remarks prepared for delivery to the Senate Banking Committee that were obtained by Reuters.
"Action by Congress is urgently required to stabilize the situation and avert what could otherwise be very serious consequences for our financial markets and our economy," he said.
Negotiations on a $700 billion bailout for the battered U.S. financial system may drag into next week as Washington lawmakers haggle over what taxpayers will get for rescuing Wall Street.
Financial markets skidded Monday as emerging details of the plan left many players skeptical about the rescue, which would give powers to the Treasury to buy up toxic mortgage-related debt from financial groups.
bailout is essential to calm the finencial market ..
who created the situation !
now taxpayers money to compensate the losses of company...