Henry Paulson confirmed today that he is working on a "bold" plan to buy bad loans from banks, the Wall Street Journal reports. Such a plan would cost taxpayers “hundreds of billions of dollars,” Paulson said, but he believes it is necessary to stabilize the economy. “The ultimate taxpayer protection will be the stability this troubled asset-relief program provides to our financial system,” he said.
Paulson didn’t give details about the plan, which is still being hammered out with Congress. Paulson expects “prompt, bipartisan action” on the bill, however, including measures to allow Fannie Mae and Freddie Mac to buy assets that don’t meet current regulatory requirements. President Bush backed the plan, CNNMoney reports. "We must act now," he said. "This is no time for partisanship."