Bad bank my ass…….
Read carefully…… Need “bad bank” to buy up bad assets of the banking crash. Funded by taxpayers. Hmmmm… One big bad bank buying all the worlds assets? Wow. How do you control it? If I’m a Green do I get a car loan? House? What if I vote wrong?
No wonder we’re all getting paranoid!
Fed Chairman Ben S. Bernanke called for “a comprehensive plan to stabilize the financial system and restore normal flows of credit,” in a Jan. 13 speech in London. He outlined options including a bad bank, “which would purchase assets from financial institutions in exchange for cash and equity.”
Bernanke was in Europe for meetings with his counterparts from the world’s largest central banks to discuss the state of the global economy and financial markets. He met with U.K. Prime Minister Gordon Brown the next day.
European policy makers are also struggling to restart lending in their region, with some considering purchases of toxic assets. The U.K. and Germany this week announced new programs to guarantee loans to companies.
“Buying toxic assets from banks is a good thing because I think confidence comes back into the banking system when you are certain — or more certain — that you have no time bombs ticking,” said Josef Ackermann, chairman of the Institute of International Finance, the Washington-based group that includes most of the world’s large banks.