Leave your feedback Share Copy URL https://www.pbs.org/newshour/show/good-bank-vs-bad-bank-segregating-toxic-assets-might-help-u-s-economy-rebound Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Transcript Business correspondent Paul Solman explores the problem of banks holding toxic assets and explains how the Swedes successfully emerged from a similar economic crisis by splitting banks into "good" and "bad" categories. Read the Full Transcript Notice: Transcripts are machine and human generated and lightly edited for accuracy. They may contain errors. PAUL SOLMAN: Prune juice, presumably, Grandma's drink of choice, though she's been dead some 46 years now.So this evening we'll use what might have been grandma's radio and these cuties to explain a phrase that's becoming a cliche, "good bank, bad bank."Now, a good bank starts out like any other firm, selling shares to investors and hunkering down for business. It then takes money from depositors like you and hopes to lend it out to borrowers, ultimately, if things go well, at a profit.President Roosevelt felt compelled to explain this patiently in his very first fireside chat, just eight days after he took office, at the bottom of the banking crisis. FORMER U.S. PRESIDENT FRANKLIN DELANO ROOSEVELT: The bank does not put the money into a safe deposit vault. It invests your money in many different forms of credit: in bonds, in commercial paper, in mortgages. The bank puts your money to work to keep the wheels of industry and of agriculture turning round.