A committee of five little-known officials at the Treasury Department is picking winners and losers among institutions seeking a slice of the bailout, the New York Times reports.
The US government could be entering a bottomless pit of bailouts if it starts propping up failing companies outside the financial sector—including the struggling auto industry, economists say.
Treasury Secretary Henry Paulson defended his decision to change how the $700 billion bailout fund is used, telling CNBC it was forced by the spreading credit crisis.
Having thrown trillions of dollars at Wall Street, the Fed and Treasury now appear ready to do the same for Main Street by proposing help for the housing market.
As regulators and shareholders sift through the rubble of the financial crisis, questions are being asked about what role lavish bonuses played in the debacle.