Paulson hoping to get $700bn rescue package through quickly

Although Mr Paulson wants to get legislation through as quickly as possible, there are several hurdles to overcome first. The two key areas of debate surround the possible inclusion of foreign owned banks in the bailout, with cries being heard that the US taxpayer should not be bailing out foreign banks even if they do a lot of business in the US.

The second hurdle is that there is a call for the banks to be made to pay some sort of price for the rescue by having to reduce the costs of the mortgage loans they provide in order to help the taxpayer who is after all picking up the tab.

Mr Paulson does not seem happy to be pushing this scheme through, but as he points out not doing it could be far worse for the US tax payer, and that at least this way it should give banks the confidence to start lending to each other again.