3/23/2009

The U.S. government's three-pronged plan to get troubled assets off the books of financial institutions relies on the participation of private-sector investors. Many investors, however, are skeptical about doing business with the federal government after the outcry over bonuses at American International Group. The plan includes creating an entity backed by the Federal Deposit Insurance Corp. to purchase loans. The Treasury will expand the Term Asset-Backed Securities Loan Facility to include "legacy" assets. Plus, a public-private investment fund will be established to buy securities.

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