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U.S. targets bad bank assets

U.S. President Barack Obama’s administration aimed squarely at thecrisis clogging the U.S. credit system yesterday with a plan to takeover up to $1 trillion US in sour mortgage securities with the help ofprivate investors.

U.S. President Barack Obama’s administration aimed squarely at the crisis clogging the U.S. credit system yesterday with a plan to take over up to $1 trillion US in sour mortgage securities with the help of private investors.

The co-ordinated effort by the U.S. Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. relies on a mix of government and private money — mostly from institutional investors such as hedge funds — to help banks rid their balance sheets of real estate related securities that are now extremely difficult to value.

The goal, said Obama, is to get banks lending again to jump-start the economy.

 
 
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