Buying up toxic debt 'crucial'

Link to the article: Channel 4

Last Modified: 23 Mar 2009
By: Sue Turton

The US government unveils plans to buy up to $1tr worth of toxic assets from struggling banks.

It will not get credit flowing again overnight, President Obama admitted today, but it is a move in the right direction.

Shares rallied sharply on the news that private companies would shoulder part of the risk.

US Treasury Secretary Timothy Geithner, who has been coming under mounting criticism, said it was crucial to revive the financial industry despite what he called "deep anger and outrage" over executive bonuses.



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