The US on Thursday signalled fresh steps to improve liquidity in credit markets and guard against future shocks to the global financial system. Hank Paulson, US Treasury secretary, said government-backed mortgage lenders could play a role in improving credit conditions at the higher end of the US mortgage market. Mr Paulson also said in testimony on Capitol Hill that the Bush administration had enlisted international assistance to review the soundness of the international banking system. His remarks suggest the administration and federal regulators are intensifying efforts to ease the credit squeeze amid criticism by Democrats over their handling of the subprime mortgage crisis.
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