http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4923414&mesg_id=4923414http://www.cnbc.com/id/28879872"The Obama administration is close to deciding on a plan to purchase bad—or non-performing and illiquid—assets from banks, according to industy sources. The plan could be announced early next week.
The so-called "bad bank" plan, would address the key problem of how to price the assets by using a model-pricing mechanism.
The model would take account of the government's ability to hold onto assets, even to maturity, and pay for the them with cheap funding. Result: the government might end up paying more than current market prices for the securities..."
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