Bailed-out banks eye toxic asset buys

 

The government plan does not allow banks to buy their own assets, but there is no ban on the purchase of securities and loans sold by others.

But public opinion may not tolerate the idea of banks selling each other their bad assets. Critics say that would leave the same amount of toxic assets in the system as before, but with the government now liable for most of the losses through its provision of non-recourse loans.

 

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