Paulson in contact with candidates on bailout plan

WASHINGTON (Reuters) - Treasury Secretary Henry Paulson has been in regular contact with presidential rivals John McCain and Barack Obama during the implementation of the Treasury's $700 billion financial rescue plan, a Treasury spokeswoman said on Friday.

Paulson has spoken a number of times with the two candidates since the plan was passed on October 3 and the Treasury launched a new capital injection program for financial institutions, said Treasury spokeswoman Brookly McLaughlin.

The Treasury is prepared to start work immediately on transition issues with the candidate who wins the White House in Tuesday's election.

"We will be ready on Wednesday morning to begin working with the incoming team," McLaughlin said. "A smooth transition is in the best interest of the financial markets and Secretary Paulson is committed to making sure there is strong coordination."

(Reporting by David Lawder; Editing by Dan Grebler)