Encouraging Banks To Lend Again

From the Times of London:

The worst is yet to come for Hank Paulson, the US Treasury Secretary.

While Mr Paulson has been working around the clock, every weekend, for five weeks to guarantee more than $1 trillion worth of American mortgages, manage the collapse of two banks, the distressed sale of two others and to secure the $850 billion bailout package, his work has barely begun.

Mr Paulson has just over a month to construct one of the biggest asset management funds in the world, a fund that will act as a financial landfill for the billions of dollars worth of toxic investments currently stagnating on the balance sheets of the world’s largest banks.

The fund – which after its three federal instalments will hold $700 billion worth of taxpayer money – is to buy up distressed mortgage-backed debt and help the banks to purge their books and, it is hoped, start lending to one another again. At the moment, the fund has no formal official to oversee it, no fund manager to run it and has no idea how it will value the assets it is about to buy.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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