Paulson Says Crumbling Economy Is “Sound”
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- Google Video
Paulson Says Crumbling Economy Is “Sound”
U.S. Treasury Secretary Henry Paulson says that, despite the economic downturn, skyrocketing fuel prices, and the subprime mortgage crisis which is devastating Wall Street’s most venerable businesses, the US financial system remains sound. But he promises he is prepared to take further action if necessary to keep the economy stable, after bailing out mortgage finance firms Fannie Mae and Freddie Mac. Speaking to the press about the collapse of financial-services firm Lehman Brothers, Paulson said the “correction” in housing markets remains a key challenge. "I'm committed to working with regulators here and abroad, as well as policymakers in Congress, to take additional necessary steps to maintain the stability and orderliness of our financial markets," Paulson said. Over the weekend, Paulson collaborated with the New York Federal Reserve Bank and the Securities and Exchange Commission to find a buyer for Lehman Brothers. He refused to commit federal money to any bailout. Lehman's holding company parent filed for bankruptcy. But other financial institutions are struggling, including insurer American International Group. Paulson was asked about reports that AIG wanted an emergency loan to help it through its troubles. "What is going on right now in New York has got nothing to do with any bridge loan from the government," he replied.
Google Video | September 16, 2008
