Posted on 03/14/2009 2:46:42 PM PDT by NormsRevenge
HORSHAM, England (Reuters) – The Treasury will offer more details in the coming week about how proposed public-private partnerships to take bad assets off banks' books will work, a senior department official said on Saturday.
The proposal for such partnerships was first made by Treasury Secretary Timothy Geithner in February but the lack of detail about them at the time disappointed financial markets led to a sharp drop in stock prices.
Many analysts say the problem of toxic assets -- particularly mortgages gone bad as a result of the U.S. housing bust -- is at the heart of banks' reluctance to lend and must be dealt with before credit markets can operate normally again.
The Treasury official told reporters it wants to put out enough information in the coming week so that potential participants can better judge the proposal and it wants to indicate the timeframe within which it is expected to become operational.
...
The Treasury official who spoke to reporters later said that enough information will be provided so that people can see that "market mechanisms" can be brought to bear on the issue.
The public-private partnerships could be a device for attracting investors to buy troubled assets at some discount in hope of future profit, offering financing support from the government for those that are willing to buy the assets.
Treasury officials have said the public-private investment fund, or funds, would be a vehicle for putting government capital alongside private capital in a program the Federal Reserve and Federal Deposit Insurance Corp. would participate in to provide as much as $1 trillion in financing for buying in assets weighing down bank balance sheets.
(Excerpt) Read more at news.yahoo.com ...
“Many analysts say the problem of toxic assets — particularly mortgages gone bad as a result of the U.S. housing bust — is at the heart of banks’ reluctance to lend and must be dealt with before credit markets can operate normally again.”
What banks are reluctant to lend?
Isn’t that just a fake excuse to bail out certain large banks filled with toxic debt?
This is funny, last time, the market was not impressed, they think the second time will be better. GOLD!
The stock market will be turning the corner soon and odumbo will be getting the undeserved credit
One way to get money flowing (and fairly trivial to implement) would be to rescind payroll deduction of FICA taxes, state sales taxes, etc...
ACCOMPLISHES EXACTLY THE SAME THING - why do you suppose, this isn’t on the discussion plate/meme?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.