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WOuld like to know from forum what do you mean by trobled asset?




The troubled assets mainly constitute the bad mortgages or mortgage related instruments or any other debt-related products. As a result, the Troubled Assets Relief Program (TARP) was introduced. The government will take these troubled assets off the banks' hands, and replace them with more useful assets.

Sub: #1 posted on Wed, 12/22/2010 - 02:21

Anna Sweeting Anna Sweeting

(Posts: 1827 | Credits: )

Actually, TARP was the government loaning the banks money, with lots and lots of regulatory strings attached. The money has to be repaid, with interest.

Sub: #2 posted on Wed, 12/22/2010 - 09:56

OhioGal1 OhioGal1
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Thank you Anna and OhioGal1. Can you tell me Toxic assets plan is related to troubled asset?

Sub: #3 posted on Wed, 12/22/2010 - 21:37

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The Toxic Asset Plan came into existence in 2009 when the mortgage market went into a major slump. The Treasury Department, at that time, planned to buy as much as $1 trillion in troubled mortgages and related assets from financial institutions. Also it offered lots of subsidies to the banks in the form of low-interest loans, coaxed investors to form partnerships with the government to buy toxic assets from banks.

Sub: #4 posted on Wed, 12/22/2010 - 23:37

Anna Sweeting Anna Sweeting

(Posts: 1827 | Credits: )


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