Obama administration leans toward bank-asset guarantees

02/4/2009 | Bloomberg

The Obama administration is moving toward leaving illiquid assets on banks' balance sheets while backing the assets with government guarantees, as the other main option, putting distressed assets into a "bad bank," increasingly falls out of favor. U.S. Treasury Secretary Timothy Geithner has had reservations about the bad-bank approach, and Sen. Charles Schumer, D-N.Y., has joined him in those doubts.

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