WASHINGTON (AFP) - The Treasury and major US banks endorsed plans Monday to help pump additional liquidity into the strained housing market by issuing "covered bonds," or flexible mortgage-backed securities.
The announcement by the banks along with US Treasury Secretary Henry Paulson comes amid a frozen market for most mortgage-backed securities and troubles for the main sources of housing market liquidity, funding firms Fannie Mae and Freddie Mac.
rner on the current housing correction," Paulson said.

WASHINGTON (Reuters) - US Treasury Secretary Henry Paulson said the nation's four biggest banks were ready to kick-start a market for covered bonds that

WASHINGTON (AP) - The Bush administration and federal banking regulators joined with the nation's four largest banks Monday to endorse a new way to pump money into the battered U.S. mortgage market.
Treasury Secretary Henry Paulson unveiled a set of best practices designed to encourage banks to issue a debt instrument known as a covered bond. The administration hopes these bonds will replace some of the mortgage financing that has disappeared as investors have incurred billions of dollars of losses on mortgage-backed securities.
f mortgage financing," he said.

Four big banks sign onto the 'covered bond' concept in a new bid to ease the strains in U.S. mortgage markets.
Colin Barr, senior writer
bid to revive the U.S. housing market.

By Rebecca Christie July 28 (Bloomberg) -- US Treasury Secretary Henry Paulson stepped up his push to create a new market for mortgage financing,