Foreign banks added to U.S. bailout list

WASHINGTON, Sept. 21 (UPI) -- Overseas banks could be eligible for financial help in the Bush administration's planned bailout of the mortgage industry, the Politico reported Sunday.

The Washington Web site said the fine print of the proposal being sent to Congress opens the door to assistance for foreign banks with large operations in the United States.

Politico called the wording a change from the original proposal that limited aid to banks headquartered in the United States; however, Treasury Secretary Henry Paulson told ABC News that foreign banks play a major role in the U.S. lending market.

"If a financial institution has business operations in the United States, hires people in the United States, if they are clogged with illiquid assets, they have the same impact on the American people as any other institution," Paulson said.

Paulson also urged Congress Sunday to quickly pass the rescue plan and not become fixated on proposed ceilings on executive compensation for industry leaders. He warned on "Fox News Sunday" that such reforms should wait until package is in place.

"If we design it so it's punitive and institutions aren't going to participate, this won't work the way we need it to work," Paulson said.