The Forbes.com Investor Team discusses Obama's proposed plan to buy up bad investments. And it proposes its own solutions.
The "Bad Bank" idea is gaining currency as a possible solution to the financial crisis. It has the benefit of separating banks from the assets that are forcing them to constantly seek financing from the government and could create a path towards the government's withdrawal from the Troubled Asset Relief Program.
The elegant solution here is that a government-sponsored aggregator bank will buy up toxic assets. It will be mostly taxpayer funded, but some private investors and merchant banks might supply some cash. The Swiss government did this in order to rescue UBS
Complete Original Article from Forbes
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