Paulson to meet with Bush, Bernanke on bailout

WASHINGTON (Reuters) - Treasury Secretary Henry Paulson will huddle with President George W. Bush and Federal Reserve Chairman Ben Bernanke on the next steps for a massive bank asset rescue plan after the House of Representatives rejected the measure on Monday, a Treasury spokeswoman said.

"The Secretary will be consulting with the President, the Chairman of the Federal Reserve and Congressional leaders on the next steps," Treasury spokeswoman Michele Davis said in a statement. "In the meantime, we stand ready to work with fellow regulators and use all the tools at our disposal, as we have over the last several months, to protect our financial markets and our economy."

(Reporting by David Lawder, Editing by Chizu Nomiyama)