The Bush administration says it plans to shift course in how it will hand out the $700 billion bailout to Wall Street. On Wednesday, Treasury Secretary Henry Paulson said the government no longer plans to buy up the toxic assets of financial firms. Instead, Paulson said the bailout will focus on boosting financing for companies that give out loans.

Treasury Secretary Henry Paulson: “Over these past weeks, we have continued to examine the relative benefits of purchasing illiquid mortgage-related assets. Our assessment at this time is that this is not the most effective way to use TARP [Troubled Assets Relief Program] funds, but we will continue to examine whether targeted forms of asset purchase can play a useful role, relative to other potential uses of TARP resources, in helping to strengthen our financial system and support lending.”

The Treasury Department says it’s still finalizing details of the new approach.