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Scope of $700 bn may be broadened: WSJ
November 04, 2008 15:01 IST
The US Treasury Department is considering using more of its $700-billion rescue fund to buy stakes in a broad range of financial companies apart from banks and insurers, after tentative signs of the programme's success, a media report said on Tuesday.
It has already invested $163 billion in a range of banks including some of the nation's largest, such as Goldman Sachs and Bank of America.
That number might expand at the expense of the asset-purchase plan, but by exactly how much is unknown, the Journal reported.
"We are looking at many ideas for strengthening the financial system and for restoring lending," Jennifer Zuccarelli, a treasury spokeswoman, was quoted as saying.
"We are weighing ideas and have made no decisions."
Treasury's planning, said the paper, could be complicated by Tuesday's election as Paulson wants to involve the next administration in major decisions between now and January.
Both John McCain, the Republican nominee and Barack Obama, the Democratic nominee voted for the $700-billion rescue plan but a new administration is certain to have its own ideas about how best to use the remaining $450 billion, the Journal said.
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