Yet Ryan himself was instrumental in giving the same firms a central role in proposing the solutions. Committees under the aegis of industry organizations  like the Securities Industry and Financial Markets Association and the American Securitization Forum, are the leading groups charged with developing "best practices" concerning transparency and disclosure to investors of risks related to asset-backed securities.

Ryan says he sees no inherent conflict in this.

"Firms that benefited because they had better practices are sharing those with other firms. I do believe the leaders in the industry can drive the industry to improve their practices."

Neither Congressional Democrats nor Republicans have been willing to openly criticize Ryan and other Treasury officials for the way they handled the rescue plan for Fannie Mae and Freddie Mac. But some Republicans are concerned that the plan could put taxpayers on the hook for huge sums.

Democrats have backed the plan, and they have been quick to accuse Republicans of endangering the economy by opposing it. A spokesman for the House Financial Services Committee, chaired by Representative Barney Frank, Democrat of Massachusetts, insisted that the Treasury officials had been "very, very adept." He added, "Our being in government so long, and them being in industry so long, it sort of balances out."

House Republican leaders, stung by criticisms that their opposition to the bailout threatened the economy, have reversed course and endorsed the plan. A staffer for the Republican Study Group, an organization of more than 100 House members that promotes conservative economic policies, said he was not aware of any specific displeasure by members in the way the Treasury officials handled the plan, although some members still strongly oppose it.

But aides to two House members, one a Democrat, the other Republican, said earlier communication by Treasury officials on the plan might have avoided the initial conflict and delay of approval, which is now not expected until sometime this week.

To enhance Ryan's clout in helping Paulson deal with the current problems, President Bush nominated him, even though only six months remain for the administration. The Senate, however, has not scheduled any confirmation hearings, and it will probably will not before the summer recess in early August.

Treasury spokeswoman Jennifer Zuccarelli said "we're keeping Congress fully occupied right now" dealing with the bailout plan.

Ryan says that when Steel told him he was leaving for Wachovia, he took his successor aside and told him, "Look, the Secretary has your confidence, your colleagues have confidence in you. Just continue to believe in yourself, and know that you have a great team."