The White House is set to announce a pair of initiatives aimed at resolving lingering problems from the financial crisis. The first is a long-delayed toxic asset cleansing program, under which the Treasury Department has been working with a group of private firms to build investment funds that combine public and private resources to purchase distressed bank securities on the cheap with the hope that they will eventually turn a profit. The second is a $35 billion project to bolster state programs that assist lower-income borrowers in obtaining affordable home loans. It entails the purchase of up to $20 billion in bonds from state and local housing finance agencies and $15 billion in other forms of liquidity.
From “More Help Coming to Clean Up Crisis” Washington Post (09/29/09) P. A14; Merle, Renae; Cho, David
Source: MHI Newswire