As the financial crisis threatens to spiral out of control, Treasury Secretary Henry Paulson is prepared to take extraordinary steps through the extensive authority granted to him under emergency rescue legislation.
With the legislation’s main mechanism—an auction system to purchase bad mortgage-based securities—still weeks away from implementation, Paulson is now expediting plans to inject capital into banks, CNBC has learned.
According to senior government officials, the plan is to offer a term sheet, offering capital injections to all banks. An announcement won't happen for several days.
Heckuva job, Henry. You too, Chris.