Treasury Secretary Henry Paulson said more needs to be done. The agency is 'actively' developing additional programs to boost lending.
The federal government is reviewing applications from hundreds of banks seeking rescue funding and is "actively" developing new programs to right the nation's unsettled financial system, Treasury Secretary Henry Paulson said Monday.
"Today we continue to work through a severe financial crisis," Paulson said, speaking in Washington, D.C., at the Fortune 500 Forum, a conference of executives and policymakers. "While we are making progress, the journey ahead will continue to be a difficult one."
The Treasury Department so far has injected $150 billion in capital into the financial system by buying preferred shares in 52 institutions. "Hundreds more" applications are under review, Paulson said.
Paulson, addressing one of the key criticisms of the government's massive $700 bailout effort, said that officials are hopeful that banks will begin lending more to consumers and businesses.
"We expect banks to increase their lending as a result of these efforts and it is important that they do so," Paulson said. "This lending won't materialize as fast as any of us would like, but it will happen much, much faster as confidence is restored."
