Government Mulls Facility to Buy Bad Debt
The federal government is mulling the creation of a facility to take on bad debt from reeling financial institutions as a way to stem the deepening financial crisis, CNBC reported Thursday.
Treasury Secretary Henry Paulson is floating the idea of a government entity, similar to the Resolution Trust Corp. of the late 1980s that solved the savings and loan crisis, to take over bad debts from a number of financial institutions. After the report aired, the overall stock market rocketed higher, and the financials were some of the biggest beneficiaries.- Loading Comments...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,291.26 | 1,098.51 | 2,166.90 | 34.74 |
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