US lawmakers sceptical of bailout

Lawmakers in the US have expressed strong scepticism about a bailout of the banking system, following a Senate hearing on the rescue plan.



Treasury Secretary Henry Paulson told the panel that delaying the US$700b bailout would put the entire US economy at risk.



But lawmakers say they want assurances that the plan will benefit ordinary American homeowners as well as Wall Street.



Some have gone further, calling the plan a potential waste of public money.



The White House has called for Republicans and Democrats to work together to approve the plan, under which a federal fund could buy bad debt from financial institutions with significant operations in the US.



Senators from both parties have voiced concerns that taxpayers would be paying a huge price for mistakes made by banks.