Paulson Calls for Student Loan Companies to be Included in the Bailout
Treasury Secretary Paulson today announced that he wants to use part of the remaining portion of the bailout fund to focus on consumer lending agencies, including student loan companies. From the Washington Post:
In a speech this morning, Paulson laid out his priorities for some $350 billion of the bailout fund that remains uncommitted. Much of the first half was used for direct capital investments into banks.
At least some of the remainder, Paulson said, should be used to reinvigorate the market for credit cards, student and auto loans — which combined account for some 40 percent of consumer credit.
“This market, which is vital for lending and growth, has for all practical purposes ground to a halt,” Paulson said.