Bailed-out banks eye toxic asset buysBy Francesco Guerrera in New York and Krishna Guha in WashingtonPublished: April 2 2009 23:20 | Last updated: April 2 2009 23:57US banks that have received government aid, including Citigroup, Goldman Sachs, Morgan Stanley and JPMorgan Chase, are considering buying toxic assets to be sold by rivals under the Treasury’s $1,000bn (£680bn) plan to revive the financial system.The plans proved controversial, with critics charging that the government’s public-private partnership - which provide generous loans to investors - are intended to help banks sell, rather than acquire, troubled securities and loans.Spencer Bachus, the top Republican on the House financial services committee, vowed after being told of the plans by the FT to introduce legislation to stop financial institutions ”gaming the system to reap taxpayer-subsidised windfalls”.
Friday, April 3, 2009
The seemingly criminal Sheila Bair*
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