Paulson says two lenders have enough funds

Washington -- U.S. Treasury Secretary Henry Paulson Jr. said Thursday two troubled, government-backed lenders have sufficient funds.

Regulators have said the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association, known as Freddie Mac and Fannie Mae, were "adequately capitalized," Paulson said in an appearance before the House Financial Services Committee.

The two lenders are "working through this challenging period," Paulson said.

Paulson also said the country's current "regulatory architecture and authorities are outdated and less than optimal," but later added he had "confidence in our regulators and markets."

"Market practices and discipline on the part of financial institutions and investors are also improving," Paulson told committee members.

Copyright 2008 by United Press International.