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The Right and Wrong Way to Bail Out the Banks
Economist's View — ... The right and wrong way to bail out the banks, by George Soros, Commentary, Financial Times: According to reports..., the Obama administration may be close to devoting as much as $100bn of the second tranche of the troubled asset relief programme funds to creating an “aggregator bank” that would remove toxic securities from the balance sheets of banks. The plan would be to leverage this amount up 10-fold, using the Federal Reserve’s balance sheet, so that the banking system could be relieved of up to $1,000bn worth of bad assets. ... ...

Soros Gives Thumbs Down to TARP 1.0, Revisited, "Aggregator Bank"
naked capitalism — ... George Soros, in a comment in today's Financial Times, "The right and wrong way to bail out the banks," takes issue with the idea of reviving TARP 1.0 in new dress and suggests another approach for dealing with the banking crisis: ...

Pink picks
FT Alphaville — ... The Leuven and Centre for European Policy Studies economics professor wonders if rating agencies are not only over-reacting and crying wolf (a type II error), but also being highly selective in their over-reaction. Some countries’ governments are being singled out, while others are not, for reasons that are obscure. George Soros’ advice to the new administration The chairman of  Soros Fund Management says there’s a right way and a wrong way to bail out the banks and the current proposal suffers from the same shortcomings: the toxic securities are, by definition, hard to ...