Posted by: Sean Brown
NEW YORK (Fortune) -- Investors have embraced Tim Geithner's toxic asset plan. The question now is whether the banks will go along too.
Geithner said Monday the government will invest alongside private parties in funds that will buy troubled loans and securities from banks. The government will also lend the buyers money.
Geithner said Monday the government will invest alongside private parties in funds that will buy troubled loans and securities from banks. The government will also lend the buyers money.
By providing a source of cheap, abundant financing, officials are hoping to bring together buyers and sellers in the troubled-asset marketplace. That market has been at a stalemate for months, with banks unwilling to accept the distressed prices vulture investors have been dangling.
Observers said the latest Treasury plan could help unlock the marketplace for troubled assets by raising the prices investors can afford to pay while still generating an acceptable rate of return.
Click here to Read More
No comments:
Post a Comment