The US Government's move to re-capitalise banks instead of purchasing toxic assets has "clearly helped stabilise" its financial system, Hank Paulson says.
Treasury Secretary Hank Pauson has expressed his regret the US has been forced to take stakes in the nation's financial institutions.
Wall Street is showing signs of recovery today as investors gain confidence Congress will pass the bank bail-out bill later this week.
London and European markets calmed down in mid-morning trading after the sharp opening decline driven by the rejection of the US $700bn bank bail-out plan.
The US Government yesterday reached an agreement with the bipartisan congressional group over the $700bn bank bail-out package.
Talks have stalled in Washington over the US Government's $700bn bank rescue plan, with fingers pointed at Republican Party members for the delay.
The UK faces "aggressive" pressure from the US Government to set up a similar scheme to its $700bn bank bail-out.
The US Government plans to invest billions of dollars in taxpayer money to stem the financial crisis, saying it is ultimately a less costly options for American citizens.
US Treasury Secretary Henry M. Paulson has tipped the American economy will "move on to new heights" following this current period of uncertainty.
The Fed is to be awarded a number of new powers as part of a major overhaul of the regulation of the US financial sector, Treasury Secretary Henry Paulson announced today.