WASHINGTON (AP) - Former Treasury Secretary Henry Paulson on Wednesday defended his response to the economic crisis last year as an imperfect, but necessary rescue that spared the U.S. financial market from total collapse.
"Many more Americans would be without their homes, their jobs, their businesses, their savings and their way of life," he said in written testimony prepared for a hearing today.
While losses have been staggering, "that suffering would have been far more profound and disturbing" had the government not intervened, he will tell the House Oversight and Government Reform Committee.
Paulson's defense came as Congress began an independent bipartisan probe into the government's handling of the crisis. Democrat Phil Angelides and Republican Bill Thomas, both politicians from California, were appointed to lead the effort.
The commission will be given $5 million to complete its work by Dec. 15, 2010.