Paulson's plan and follow-up of the U.S. government
September 18, 2008 U.S. Treasury Secretary Henry Paulson said that he, together with the Federal Reserve System (FRS) the USA and representatives of the Congress is working on a plan to "tackle the problem of systemic risk" to U.S. capital markets and distressed assets. The plan involves creating a state corporation, which buys distressed assets from banks. Paulson proposes a $ 700 billion corporation corporation will be created following the example of a corporation Resolution Trust Corporation (RTC), which was used to eliminate bad debts during the crisis of the late 1980's.
September 29, 2008 U.S. House of Representatives rejected the Paulson plan. The plan was adopted by the Senate on October 1 and October 3, 2008 the U.S. Congress approved the Paulson plan (Emergency Economic Stabilization Act of 2008). October 5, U.S. President signed the Paulson plan. Formation of corporations and recruitment. The head of the Office of Financial Stability (Office of Financial Stability) appointed Ed Forst (Ed Forst), a former top manager of Goldman Sachs Group Inc.
November 13, 2008 Paulson proposed to abandon the purchase of illiquid mortgage assets of banks, as this is not the most efficient way to use the allocated funds.
November 25, 2008 was declared the intention of the Federal Reserve to pour an additional $ 800 billion into U.S. banking system, which, as stated by Henry Paulson, is aimed at promoting consumer lending consumers. The announced program, which provides, inter alia, the redemption of the Fed by $ 600 billion in loans issued or guaranteed by mortgage agencies Fannie Mae, Freddie Mac, Ginnie Mae and the federal bank home loan, as a surprise to experts as it relates to funding sources and consequences of such an issue of money, which can lead to a devaluation of U.S. currency.