Paulson raised RTC-style concept with Congress: source

WASHINGTON (Reuters) - Treasury Secretary Henry Paulson has been shopping around a proposal to congressional lawmakers that would create an entity to deal with the bad debt, similar to what was done in the savings and loan crisis, a congressional aide said on Thursday.

"It's a modernized version of the Resolution Trust Corporation, which was used after the S&L crisis," said the aide, declining to be further identified.

(Reporting by Jeremy Pelofsky, editing by Jeffrey Benkoe)