How Wall Street wants to solve the credit crisis
Article from Forbes which outlines the recommendation by Thomas Flexner of Citigroup (a company loaded with toxic assets) for the government to provide long-term, secure (and low interest rate I assume) financing to investors for purchasing various “toxic assets”. Currently the value of these “toxic assets” are frozen on the bank’s balance sheets since there is simply no market for them.
If government provides the secure financing, then it gives investors the confidence to make bets using their own equity and get their desired return on investing on these toxic assets which have been driven to absurdly low levels.
