HIGHLIGHTS: Policy-makers' remarks on $250 bln bank plan

WASHINGTON (Reuters) - The U.S. Treasury Department on Tuesday announced it would pump up to $250 billion into U.S. banks to help unfreeze credit markets and the Federal Deposit Insurance Corporation also took steps to protect depositors.

Following are highlights of comments by policy-makers on the plan.

U.S. TREASURY SECRETARY HENRY PAULSON:

"Today there is a lack of confidence in our financial system, a lack of confidence that must be conquered because it poses an enormous threat to our economy."

"In recent weeks, the American people have felt the effects of a frozen financial system. They have seen reduced values in their retirement and investment accounts. They have worried about meeting payrolls, and they have worried about losing their jobs."

"We regret having to take these actions. Today's actions are not what we wanted to do but today's actions are what we must do to restore confidence in our financial system"

"Combined, our actions are extensive, powerful and transformative."

"We are acting with unprecedented speed, taking unprecedented measures that we never thought would be necessary. But they are necessary to get our economy back on an even keel."

FEDERAL RESERVE CHAIRMAN BEN BERNANKE:

"I am not suggesting the way forward will be easy. But I strongly believe that the application of these tools, together with the underlying vitality and resilience of the American economy, will help to restore confidence to our financial system and place our economy back on a path to vigorous, healthy growth."

FEDERAL DEPOSIT INSURANCE CHAIRMAN SHEILA BAIR:

"The overwhelming majority of banks are strong, safe and sound but a lack of confidence is driving the current turmoil and it is a lack of confidence that these guarantees are designed to address."

"All of us are prepared to do whatever it takes to fix whatever problems arise and to work with Wall Street and Main Street to unclog the financial system so that it can continue fueling the economic system and creating jobs."