Financial Times FT.com

Bailed-out bank groups consider buying toxic assets from rivals

By Francesco Guerrera in New York and Krishna Guha in,Washington

Published: April 3 2009 03:00 | Last updated: April 3 2009 03:00

US banks that have received government aid, including Citigroup, Goldman Sachs, Morgan Stanley and JPMorgan Chase, are considering buying toxic assets to be sold by rivals under the Treasury's $1,000bn plan to revive the financial system.

The moves could be controversial because a key goal of the government's public-private partnerships, which provide generous loans to investors, is to help banks sell, rather than acquire, troubled securities and loans.

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