Bailout Funds to be Used For Capital Injection
The US Treasury is backing away from plans to use the $700 billion dollar bailout funds to purchase toxic mortgage related debt from troubled financial institutions. Treasury Secretary Paulson said that he preferred a second round of capital injections to help financial institutions weather the worst financial crisis in decades. Paulson told a news conference, “Our assessment at this time is that this (the purchase of toxic assets) is not the most effective way to use funds.”
