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Buying Toxic Assets

Friday, March 20, 2009

The Obama Administration has yet to release details of the Public-Private Investment Plan it will use to get toxic assets off the books of banks, so NBR's Darren Gersh asked Mike Pagano of Villanova School of Business to explain how the toxic asset plan might work. You can watch the report here and in tonight's program.To watch now, just click the image below. (You need Flash installed to watch.)

The Math of Buying Toxic Assets

Darren offers some theoretical numbers in his latest blog entry. Check it out: Buying Toxic Assets -- How the Treasury Plan Might Work.

Related NBR Stories & Links

• 02-13-09: The Stimulus Bill Goes Through the House
• 01-29-09: "XChange, The NBR Blog" - Assume Warren Buffett!
• 01-28-09: Treasury Secretary Timothy Geithner Meets the Press
• 01-21-09: President Obama Goes To Work While Treasury Secretary Designate Geithner Takes The Hill

External Links/Articles*

• American Enterprise Institute (AEI)
  AEI is a private, nonpartisan, not-for-profit public policy research institute. This links to a February 9, 2009 article published on the AEI website. The article is titled, "From Awful to Merely Bad: Reviewing the Bank Rescue Options." It includes a discussion of toxic assets.
• Brookings
  Brookings is a nonprofit public policy research organization. This links to a February 20, 2009 paper published on the Brookings website. The paper is titled, "Bank Toxic Assets: What Role for the Taxpayer?" It is the first part of a Brookings series about "Designing the Public/Private Partnership."
• U.S. Department of Treasury
  This links to a February 10, 2009 issued by the Treasury Department. The release is titled, "Secretary Geithner Introduces Financial Stability Plan." The release mentions the Public-Private Investment Plan that will be created to buy toxic assets.
• Villanova School of Business
  Michael Pagano, Associate Professor of Finance at Villanova University, helps Darren Gersh calculate what it takes to buy a toxic asset. This links to Pagano's bio.
• Vox
  Vox is a website offering Research-based policy analysis and commentary from leading economists. This links to a February 16, 2009 article titled "How to Value Toxic Assets." It was authored by Neil McCulloch of the Institute of Development studies.

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.