WASHINGTON — Responding to criticism from both parties, Treasury Secretary Henry Paulson emphasized today that the $700 billion plan to purchase illiquid assets "is not a spending program. It is an asset purchase program" and most of the money could go back to the government when it resells the assets.
He told the House Financial Services Committee that this plan will "cost Americans far less than the alternative," more financial institution failures and less credit.
Paulson specifically mentioned credit unions as being eligible to participate in the program to sell bad assets to the government.
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He departed from his prepared remarks and acknowledged that many people are outraged by the high level of executive pay "and rightly so." He declined to say whether he would support efforts by some Democratic lawmakers to limit executive compensation at those financial institutions participating in the program.
President Bush is scheduled to speak to the nation tonight at 9:00 p.m. about the importance of enacting the plan.
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