Treasury Secretary Henry Paulson said he did not have all of the necessary means at his disposal to fight the credit crisis when it was in its earliest days. Paulson told Financial Times that he feared the world's financial system was on the verge of collapse during three occasions in the past six months: the crisis at Fannie Mae and Freddie Mac; the bankruptcy of Lehman Brothers; and the House of Representatives' initial refusal to approve a $700 billion bank bailout. Paulson said he relied on "aggressive intervention" and that he had never experienced anything "remotely like this" in his lengthy career.

Related Summaries