Paulson plan is critical: Canada's Carney

Mark Carney, the governor of the Bank of Canada, has warned that the plan put forward by the US treasury secretary Hank Paulson to buy up to $700 billion in distressed assets is "critically important".

Speaking in Montreal on Thursday, Carney - who, said: "Banks have an increasing need for capital, but it has become more difficult to raise it. In this environment, the US government's initiative to buy distressed assets is critically important."

Carney, who like Paulson is a former Goldman Sachs