Paulson continues Tarp U-turn

Henry Paulson, the US secretary of the treasury, has signaled a further shift in the way the administration will use the $700 billion at its disposal under the Troubled Asset Relief Program (Tarp), by saying purchasing bad assets from financial institutions is not the most effective way to use the funds.

Speaking in Washington on Wednesday, Paulson paved the way for the government to step up its acquisition of equity stakes in trouble banks - something he originally resisted, when he told

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