In Congress, Concern Over Bailouts

After the events of the current week, where a few key financial firms failed and the government started a rescue plan for the others that had already failed, Paulson said that the government needs to access $700 billion in taxpayers funds to buy the bad debt from these firms to make the United States financial system work properly again. Both parties had their questions about the plans, the Democrats said that yes there was a need for urgency but they want oversight on how the money is spent, but the Republicans agree with the oversight but they want the Treasury to guarantee that some of the funds will be repaid. This is considered as the "mother of all bailouts" by one lawmaker as the Bush adminstration insisted that Congress act quickly to pass the plan and put it into action. Paulson said that the nation's outdated regulatory system for financial markets must be overhauled but the first job is to get the rescue package through Congress and then deal with a comprehensive regulatory overhaul next year. In addition to this plan, Paulson said that the Treasury plans to recoup some of the money when the housing market rebounds along with the mortgage assets.