Paulson Dons His Cape

Updated from 11:55 a.m. EST

Treasury Secretary Henry Paulson on Monday acknowledged a government-led plan to help subprime borrowers avoid foreclosure.

Paulson, in a scheduled presentation at the National Housing Forum in Washington, D.C., said the Treasury is working on a "three-point plan" to "avoid preventable foreclosures" and to "minimize the impact" of the housing downturn on the U.S. economy.

"As we are all aware the housing and mortgage markets are working through a period of turmoil, as are other credit markets, as risk is being reassessed and repriced," Paulson said at the forum, hosted by the Office of Thrift Supervision. "The number of subprime mortgage resets is going to increase dramatically next year, and we need to make sure the capacity is there to handle it," he said. ...