U.S. Treasury Secretary Henry Paulson said on Thursday the plan of direct U.S. stake in banks is focused on regulated firms, indicating unregulated firms such as hedge funds won't initially get government aid.
"We're focused on financial institutions, regulated financial institutions," Paulson said in an interview with Bloomberg Television, when asked whether hedge funds might also be eligible.
"The program right now is for banks and thrifts," he was quoted as saying.
Banking strains have hurt broader economic growth, pushing the United States toward a recession. "There's been a shock in the credit markets, and that's exacted a toll on the real economy," said Paulson.
He acknowledged that the U.S. economy faces "a number of tough months" ahead.
In a separate interview on Fox Business Network, Paulson insisted the Bush Administration is pursuing the correct course now to end the debacle.
"We will mitigate the impact on the real economy and we'll get this financial system working again," he said.
(Xinhua News Agency October 17, 2008)
