Obama Mulls Funds to Buy Bad Assets

Discussion in 'Economy' started by wimpy77, Mar 3, 2009.

  1. wimpy77
    Offline

    wimpy77 Member

    Joined:
    Jan 21, 2009
    Messages:
    591
    Thanks Received:
    10
    Trophy Points:
    16
    Ratings:
    +10
    The Obama administration is considering creating multiple investment funds to purchase the bad loans and other distressed assets on banks' books, the Wall Street Journal reports, citing people familiar with the matter.

    More on Bonds/Economy Geithner, Bernanke Defend Federal PlansFed Launches Program to Buy $200B in CreditIlliquid Session in the Muni Bond MarketMunicipal Bond Sector in 'Slightly Better' PlaceConstruction Activity Falls SharplyManufacturing Sector Contracts AgainConsumer Spending Rises in JanuaryMuni Trading Muted in Secondary MarketsCalif. Jobless Rate Jumps to 10.1% in JanuaryMunicipal Bonds Pull Back No decision has been made on the final structure of what the administration is calling a private-public financing partnership, but one leading idea is to establish separate funds to be run by private investment managers, the Journal reports. The managers would have to put up a certain amount of capital. Additional financing would come from the government, which would share in any profit or loss.
    The private investment managers would run the funds, deciding which assets to buy and what prices to pay. The government would contribute money from the $700 billion bank bailout, with additional financing likely coming from the Federal Reserve and from selling government-backed debt. Other investors, such as pension funds, also could participate, the newspaper
     
  2. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,527
    Thanks Received:
    4,850
    Trophy Points:
    1,130
    Ratings:
    +15,362
    The market responded positively to what Geithner was saying.

    Then along came Gibbs :banghead:
     
  3. wimpy77
    Offline

    wimpy77 Member

    Joined:
    Jan 21, 2009
    Messages:
    591
    Thanks Received:
    10
    Trophy Points:
    16
    Ratings:
    +10
    yeah geithner took the questioning well and basically said the truth and so did bernanke.
     

Share This Page