Paulson Plan

The Paulson Plan, named after then-Treasury Secretary Henry Paulson, was a financial rescue strategy during the 2008 financial crisis. It aimed to stabilize the U.S. economy by purchasing distressed assets, particularly mortgage-backed securities, from banks to restore confidence and liquidity in the financial system. The plan proposed using taxpayer money to buy these troubled assets, helping banks recover and encouraging them to lend again. Over time, the program evolved into the Troubled Asset Relief Program (TARP), which ultimately supported the financial industry and helped prevent a deeper recession.