By JEANNINE AVERSA, AP Economics Writer
WASHINGTON –on Sunday defended the ‘s decision to help rescue ., the teetering . He sidestepped questions about whether other firms are on shaky ground and the possibility of addtional interventions of this kind.
(AP Photo/Jose Luis Magana)
At the same time, Paulson sought to send a calming message that the Bush administration is on top of the turbulent situation. “The government is prepared to do what it takes” to ease turmoil in the financial system and minimize any damage to the national economy, Paulson said during a series of broadcast interviews. The Fed’s intervention “was not a difficult decision. It was the right decision.”
The Fed, using a Depression-era procedure, raced to‘ aid Friday along with . Bear Stearns had made a fortune in mortgage-backed securities but faced a possible collapse after those investments soured. nose-dived as fears spread about whether other big firms were in jeopardy.
“When you go through a period like this,” Paulson said, “policymakers need to balance various consequences.”