Financial Times FT.com

Toxic assets ‘bridge too far’

By Krishna Guha in Washington

Published: June 1 2009 23:37 | Last updated: June 1 2009 23:37

The Federal Reserve should not be involved in financing toxic assets that date from the bubble era, Charles Plosser, president of the Philadelphia Fed, has told the Financial Times.

“I think it is a bridge too far,” said Mr Plosser, arguing that such proposed Fed loans would expose the US central bank to credit risk and tie up a sizeable chunk of its balance sheet in long- term assets that would be hard to price and liquidate.

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