This is a quote from the book "Chancellor Alistair Darling on brink of second bailout for banks" by The Times
...encourage private finance, but a number of interventions are on the table, including further injections of taxpayers’ cash.

Under one option, a “bad bank” would be created to dispose of bad debt s. The Treasury would take bad loans off the hands of troubled banks, perhaps swapping them for government bonds. The toxic assets, blamed for poisoning the financial system, would be parked in a stat e vehicle or “bad bank” that would manage them and attempt to dispose of them while “detoxifying” the main-stream banking system.

The idea would mirror the initial proposal by Henry Paulson, the...

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