blogs.cfr.org - 2/10/2009
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Two weeks ago, George Soros memorably framed the core choice the US now faces as a choice between buying toxic assets or taking over toxic banks.
“The hard choice facing the Obama administration is between partially nationalising the banks, or leaving them in private hands but nationalising ...
telegraph.co.uk - 2/11/2009
bloomberg.com - 2/9/2009
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bloomberg.com —
Feb. 9 (Bloomberg) -- Treasury Secretary Timothy Geithner
is seeking to draw investors into the U.S. financial-rescue...
program, aiming to add private funding as a new component of proposals to address the toxic debt clogging banks’ balance sheets. ...
(more)
Geithner Seeks Private Investment for Toxic Assets ...
online.wsj.com - 2/3/2009
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online.wsj.com —
ROBERT C. POZEN The Obama administration is reportedly
developing a plan to buy from U.S. banks some...
of their "toxic" assets -- troubled debt securities backed by subprime mortgages or complex derivatives. Many commentators agree that banks will not ...
(more)
Robert C. Pozen: How to Value Toxic Bank Assets
Comments
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In a nutshell
Marginal Revolution —
... securities. By
providing credit to those willing to buy bad assets, the US government
hopes to push up their market price up, and in the process induce the
banks now holding these assets to sell. The US government in effect is
providing the financial system with leverage to facilitate – one hopes
– a transition to a less leveraged financial system. The amount that
private investors have to put down – relative to the amount they are
spending – is a key detail. The post is interesting throughout.
Readings II 02/10/09
Paul Kedrosky's Infectious Greed —
Aladdin Capital launches debtor-in-possession fund (hedgeweek) Why We're Probably in For a Long Recession (538.com) Providing social transparency to Wikipedia (Wikidashboard) Toxic banks or toxic assets? (Setser) World shipbuilding orders set to slump by 60% this year (LL) Rising unemployment gravest threat to U.S./U.K. (Reuters)
...
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