Paulson hints at possible bank recapitalisation

Hank Paulson, the US Treasury secretary, has indicated that America is likely to attempt to recapitalise its ailing banks.

Paulson said on Wednesday that the Emergency Economic Stabilization Act, passed by Congress last week, "adds broad, flexible authorities for Treasury to buy or insure troubled assets, provide guarantees, and inject capital. We will use all of the tools we've been given to maximum effectiveness, including strengthening the capitalisation of financial institutions of every

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