Excerpt from: Forex News
|
 |
| January 20, 2009 | | Policymakers consider idea of bank for toxic assets | As Barack Obama takes the Presidential Oath of Office today, many ideas are floating around with regard to what might be done about the economy. In many cases, there are concerns about bank bailouts and making efforts to shore up an ailing financial system. One of those ideas is that of a "bad bank" for toxic assets.
This bank would be a national bank (not a nationalized bank, like what is being done in Britain), and would house bad assets that are poisoning the balance sheets of many banks. It is hoped that if some of these assets are removed, banks will be solvent and begin lending again.
But this is not the only plan. Policymakers are also mulling over the idea of guaranteeing bank assets against losses and other aggressive action.
| Topic Tags: Bad Bank, bailout, balance sheets, Barack Obama, economy, national bank, nationalized bank, trading | |
|
|
