The Obama administration is considering creating multiple investment funds to purchase the bad loans and other distressed assets on banks' books, the Wall Street Journal reports, citing people familiar with the matter.

No decision has been made on the final structure of what the administration is calling a private-public financing partnership, but one leading idea is to establish separate funds to be run by private investment managers, the Journal reports. The managers would have to put up a certain amount of capital. Additional financing would come from the government, which would share in any profit or loss.

The private investment managers would run the funds, deciding which assets to buy and what prices to pay. The government would contribute money from the $700 billion bank bailout, with additional financing likely coming from the Federal Reserve and from selling government-backed debt. Other investors, such as pension funds, also could participate, the newspaper reports.
This article was written by a staff member of TheStreet.com.