U.K. Treasury plans ‘bad bank’ to buy toxic assets

A

ASusilovic

A state owned “bad bank” to buy up tens of billions of pounds of toxic assets from high-street banks with taxpayers’ money could be set up, under plans being drawn up by the Treasury.

Gordon Brown is preparing a new multi-billion pound rescue package for the banks which is expected to be announced next week.

In his strongest hint yet that a “bad bank” is a serious option, the Prime Minister said that “action” on toxic debts, which are blamed for the failure of high-street banks to resume normal lending, is now essential.

http://ftalphaville.ft.com/blog/2009/01/16/51248/bad-bank-brewing/

Seems, bad banks are "in"... :D
 
I'd rather have the Fed keep buying the bad assets, so foreign dollar holders end up sharing some of the pain instead of taxpayers.
 
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