Posts Tagged ‘aggregator’
Back in September, Simon and I wrote two op-eds on the governance and pricing challenges of buying toxic assets. As many people have noted, those problems have not gone away. The latter, in particular, represents a formidable barrier to Tim Geithner’s latest proposal to create a public-private partnership to relieve banks of their toxic assets. [...]
Yesterday, Tim Geithner told reporters, “We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system.” On its face, I think most Americans would agree that a private banking sector is better than just having one big government bank. But [...]
The Financial Times has just published an op ed by Peter Boone and me, arguing that aggressive bank recapitalization and toxic debt clean-up is essential in the U.S. – and that this can be done with strong protections for taxpayers and without nationalization. The FT did a great job cutting our draft down to fit their print edition (of [...]
For a complete list of Beginners’ articles, see the Financial Crisis for Beginners page. With the regularity of a pendulum, the focus of discussion has swung back to the banking system (September: Lehman and AIG; November: Citigroup; January: Bank of America, and everyone else). And as everyone waits in anticipation for the Obama team’s first [...]
It looks like a bank aggregator for bad assets is pretty much a done deal. David Axelrod said yesterday we should expect a new approach within a few days, and leading reporters (NYT, Washington Post) have discerned that this is likely to include a “bad bank” into which troubled/toxic assets can be disposed. We don’t yet [...]
Sheila Bair is delivering a sensible general message: we need dramatic action to clean up banks’ balance sheets and, presumably, to recapitalize them. This initiative apparently has support from influential senators, such as Kent Conrad and Charles Schumer. Many Republicans also seem inclined to come on board. I like an aggregator-type approach; this is quite consistent with [...]
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Trial Balloons: Insuring The Bad Assets
January 30, 2009 in Commentary
Tags: aggregator, Banking
The Administration is obviously floating ideas to assess potential reactions, particularly from Congress. Today’s front page WSJ article on banking should be seen in this light. It’s obviously not a fully-fledged proposal, but the concepts are there to elicit opinions and I don’t think it’s particularly helpful if we hang back. The article raises the possibility [...]