Paulson: Will leave second half of TARP untapped

Paulson, on CNBC, says he will leave the second $350 bln tranche of the TARP to the incoming administration. He does not expect any other major financial institutions to fail as the TARP has helped stem the financial crisis.

The Treasury is still looking at ways to lower mortgage rates, saying earlier talk of the plan leaked.

He also says the automakers will receive TARP cash when all the proper safeguards have been met.