Bad banks
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A bad bank is a bank that holds bad, or 'toxic' assets, allowing some other bank to get rid of these assets and thereby become a 'good bank.'[1]
"How does a bad bank solve this problem? There are two basic models: one in which each sick bank splits into a good bank and a bad bank, the other in which the government creates one big bad bank and multiple sick banks unload their toxic assets onto it."[1]
Resources
Also see
- Barney Frank
- Ben Bernanke
- Henry Paulson
- Lawrence Summers
- Troubled Assets Relief Program/TARP (See Emergency Economic Stabilization Act of 2008)
- Tim Geithner
References
- ↑ 1.0 1.1 "Bad Banks" for Beginners, The Baseline Scenario, January 21, 2009.
External articles
- Liz Moyer, UBS. Bad Bank, Forbes, April 1, 2008.
- Colin Barr, Geithner must avoid Paulson's mistakes. How the new Treasury secretary can show the public and investors he has an actual plan to deal with the banking crisis, CNN Money, January 7, 2009.
- Pundita, Is the US dollar going the way of the pengo? RBO, January 9, 2009.
- John Batchelor, John Galt Meets Winnie-the-Pooh, RBO, January 9, 2009.
- Bernanke looks to create 'bad banks', Marketplace/Public Radio, January 13, 2009.
- Paul Krugman,Bad bank bafflement, New York Times, January 17, 2009.
- John Batchelor, Great Britain Just Failed, RBO, January 17, 2009.
- Global Consequences of a US “Bad Bank” Aggregator: It’s Mostly Fiscal, The Baseline Scenario, January 18, 2009.
- Paul Krugman, More on the bad bank, New York Times, January 18, 2009.
- John Batchelor, Batchelor & Constable: “Pizza Connection” and “Bad Bank Bad Time”, RBO, January 20, 2009.
- Ronald D. Orol, Federal 'bad bank' is a bad idea, says key lawmaker. Obama administration to release comprehensive stabilization plan in 'weeks,' MarketWatch, January 21, 2009.
- John Batchelor, Death Spiral Warning, RBO, January 21, 2009.
- MarketWatch: Thai Turmoil and an Empty Pizza Box, RBO, January 21, 2009.
- John Batchelor, Tibet Clues, RBO, January 21, 2009.
- John Batchelor, John Galt Will Cut Taxes, RBO, January 22, 2009.
- MarketWatch: Will U.S. Follow Britain into Banking Armageddon? RBO, January 23, 2009.
- John Batchelor, The Royal We at the White House Notices the Failed Banks, RBO January 24, 2009.
- Bill Zucker: "I want some TARP", RBO, January 24, 2009.
- Steven Liesman, Plan for Banks' Toxic Debt May Be Unveiled Next Week, CNBC, January 27, 2009.
- Robert Schmidt and Alison Vekshin, FDIC May Run ‘Bad Bank’ in Plan to Purge Toxic Assets, Bloomberg News, January 29, 2009.
