Major lenders set to replenish dwindling bailout fund

WASHINGTON: The dwindling US financial bailout fund will get a boost this week with repayments from some large banks and could see more resources freed up as once-ambitious programs to buy up toxic bank assets shrink.

This could present the US Treasury with a welcome dilemma: what to do with potentially more than $100 billion in unallocated funds as financial market confidence strengthens.

Among the options are increased aid for the housing sector, programs to support mortgage insurers and municipal borrowers that have been clamoring for help, or perhaps just socking the money away for a future emergency.