Paulson Is Unlikely to Launch New Rescue Programs

Deborah Solomon reports on the Treasury Department. Treasury Secretary Henry Paulson said he is unlikely to use what remains of the $700 billion rescue fund to launch any substantial new programs, preferring instead to keep some money in reserve and preserve flexibility for the incoming administration. Paulson said in an interview that he’s thinking about how the remaining $410 billion could be best used, but that he doesn’t plan to tap it unless a need arises. “I’m going to do what we need to do to keep the system strong but I’m not going to be looking to start up new things unless they’re necessary, unless they make great sense,” he said. “I want to preserve the firepower, the flexibility we have now and those that come after us will have.” That means many of the big decisions about how to use the fund, especially relating to thorny problems such as foreclosures, will be held over until President-elect Barack Obama takes office in January. (link)