Paulson to use US taxpayer cash to prop up banks

In a statement today, US Treasury Secretary Henry Paulson unveiled the measures he would take to prevent the financial system from collapsing. News of the rescue plan boosted US markets, with the Dow Jones climbing 3.65% to 11,421.83 in early trade, but shares fell again immediately following the announcement. The FTSE 100 has climbed almost 9% since trading began in London. To relieve liquidity problems, which Paulson says are responsible for the lack of normal credit facilities and have damaged investment and job creation in the US, the Government will take two steps to help financial...