Troubled asset
Date: Wed, 12/22/2010 - 02:03
The troubled assets mainly constitute the bad mortgages or mortg
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.
Actually, TARP was the government loaning the banks money, with
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.
Thank you Anna and OhioGal1. Can you tell me Toxic assets plan
Thank you Anna and OhioGal1. Can you tell me Toxic assets plan is related to troubled asset?
The Toxic Asset Plan came into existence in 2009 when the mortga
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.