Treasury Secretary Henry Paulson said Wednesday that financial markets continue to be "strained" but he urged "patience" and said the federal government will use all tools necessary to ensure stability in the financial system.
"We will coordinate the use of our existing and new authorities to restore market confidence by strengthening financial institutions, preventing systemic bank failures, increasing liquidity to financial markets and keeping mortgage credit available and affordable," Paulson said.
He added: "Every effort will require careful analysis, deliberation and transparency, and some measure of patience from the American people as we create the most effective process possible."
Paulson noted that it will likely be several weeks before the Treasury starts fully operating a program to buy troubled mortgage assets as it is authorized to do by the $700 billion bailout enacted last Friday.
In addition, Paulson said he would discuss with his counterparts in G7 countries what more can be done collectively to stabilize the financial system, and that he will be calling for a meeting of the G20, which includes countries with emerging economies.
