US' Paulson seeks second $350b in bailout funds

Washington: US Treasury Secretary Henry Paulson said that government loans to Detroit automakers will prevent "significant disruption" to the US economy and called on Congress to release a second $350 billion tranche of bailout funds.

Paulson, in a statement on Friday following the White House's announcement of up to $17.4 billion in loans for General Motors Corp., Chrysler LLC and Ford Motor Co., said the first $350 billion of the Troubled Asset Relief Programme funds was effectively exhausted.

"It is clear, however, that Congress will need to release the remainder of the TARP to support financial market stability. I will discuss that process with the congressional leadership and the president-elect's transition team in the near future," he said.