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Paulson and Bernanke defend bailout

Ben Bernanke, the US Federal Reserve chairman, told a congressional committee yesterday that credit markets are stabilising but remain under pressure while Treasury Secretary Henry Paulson said he opposes tapping a $700bn taxpayer-funded scheme to help struggling US carmakers.

Ben Bernanke, the US Federal Reserve chairman, told a congressional committee yesterday that credit markets are stabilising but remain under pressure while Treasury Secretary Henry Paulson said he opposes tapping a $700bn taxpayer-funded scheme to help struggling US carmakers.