US to "press" countries to forge financial bailouts
Posted: 21 September 2008 2210 hrs

	Photos  of
	Related News • Battle brewing over historic US financial firms bailout • US races to forge historic financial sector bailout • "Big package" needed to solve financial crisis, says Bush • US administration proposes US$700b rescue plan • World stocks rocket as governments step up rescue efforts

WASHINGTON - The United States will press other countries to forge bailout plans for financial institutions where needed, US Treasury Secretary Henry Paulson said Sunday.

Paulson said the Treasury's proposal to Congress for authority to spend 700 billion US dollars to buy toxic mortgage-related assets from financial institution could serve as a blueprint for foreign authorities facing similar problems.

In an interview on Fox television, the Treasury secretary said: "I'm also going to be pressing our colleagues around the world to design similar programmes for their banks and institutions when they are appropriate."

He said the intent of the legislation "right now wouldn't be to buy from hedge funds."

Asked whether the plan provides for government purchases of tainted assets owned by foreign institutions, Paulson said that would occur as long as they have operations in the US.

"Obviously, we'd want to buy from financial institutions that are employing people, and are an important part of our economy. Because to the American people, if an institution is doing business here is clogged, and can't perform the role they need to do, it's a distinction without a difference -- whether it's a foreign or a US owned."

"Remember, our system is a global one," he said.

Regarding the unprecedented rescue plan unveiled to Congressional leaders late Friday, Paulson, a former Goldman Sachs president, said: "I hate the fact that we have to do it."

"This is a humbling, humbling time for the United States of America as we go around the world and talk to people about our financial system. We'll work through this. We need to stabilize it first and take steps to clean things up."

- AFP/ir