It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Following the meeting, Paulson revealed no detailed plans but said the group's discussion focused on financial institutions' illiquid assets.
A Treasury statement said Paulson and Bernanke were exploring all options available to them and would work with congressional leaders through the weekend. A government official speaking to CNBC ruled out any formal announcements Thursday or Friday.
The Bush administration wants to make sure Congress is behind the idea before it moves ahead on the plan, a source told CNBC. Pelosi, a Democrat, said in a letter to Bush Thursday that the worsening economy demands another bipartisan economic recovery effort, and that Congress will stand ready beyond the Sept. 26 scheduled adjournment date to consider legislation.
The creation of a government facility for bad debts, according to its advocates, would allow banks to shovel bad debt off their balance sheets and allow the firms to go back to business as usual. It would also eliminate the need for individual company bailouts.
In turn, that could allow the housing market to recover because it would restore banks willingness to lend.