Paulson to work with Obama for smooth transition

WASHINGTON — Treasury Secretary Henry Paulson pledged Thursday to work closely with President-elect Barack Obama to pave the way for a smooth transition as the country battles its worst financial crisis in decades.

"A methodical and orderly transition is in the best interests of the financial markets and Treasury is committed to making sure that the incoming team can hit the ground running in January," Paulson said in a brief statement.

That's especially important because the department is in charge of rolling out a $700 billion financial bailout package. The package — a massive federal intervention —— was passed by Congress and signed into law by President Bush last month.

The Bush administration is already pouring $250 billion into banks in return for partial ownership. It also may use some of the money to buy rotten mortgages and other toxic debt held by financial institutions.

Many companies, including automakers and insurance firms, are pressing the government for some financial assistance. Much of the work in implementing the program — and crucial decisions — will be left to Obama's incoming administration.

Obama has shifted into the task of building a new Democratic administration. A priority will be quickly assembling his economics team led by the Treasury Secretary.

Former Treasury Secretary Lawrence Summers, who served in the Clinton administration, Timothy Geithner, president of the Federal Reserve Bank of New York, and New Jersey Gov. Jon Corzine, a former Goldman Sachs executive, are among the names being mentioned for that post.