Paulson says regulators need powers to calm crisis

WASHINGTON (Reuters) - U.S. Treasury Secretary Henry Paulson told Congress on Thursday that regulators need emergency authority to step in to limit temporary disruptions to financial markets, a source familiar with his testimony said.

"These authorities should be flexible, and -- to reinforce market discipline -- the trigger for invoking such authority should be very high, such as a bankruptcy filing," Paulson said in prepared remarks.

Reuters obtained a copy of Paulson's opening statement ahead of its official release.

"Any potential commitment of government support should be an extraordinary event that requires the engagement of the Treasury Department and contains sufficient criteria to prevent costs to the taxpayer to the greatest extent possible," he added.

(Reporting by Glenn Somerville; Editing by James Dalgleish)