US drops plan to buy toxic assets

RUDDERLESS Henry Paulson said the money should be spent on banks and shoring up consumer credit markets. Watchdog posts to oversee the fund have yet to be filled

AFP , WASHINGTON

The Post said the top candidate to head the new office was New York federal prosecutor Neil Barofsky, the lead prosecutor in the US$2.4 billion accounting-fraud case against former executives of the collapsed financial firm Refco.

But there is a turf war between two Senate committees over who has jurisdiction over confirming the candidate, the Post said, which could delay the confirmation well into next year.

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