Image: sxc.hu

• BlackRock (BLK, Fortune 500)
• AllianceBernstein (AB)
• Oaktree Capital Management
• Invesco (IVZ)
• Angelo, Gordon & Co.
• Marathon Asset Management
• RLJ Western Asset Management
• The TCW Group
• Wellington Management Company

CNNMoney’s David Ellis says:

Under the program, the government will run auctions between the banks selling assets and investors buying them. The aim is to effectively create a market. The goal is to help cleanse the balance sheets of many of the nation’s largest banks and help get credit flowing again.

The goverment investment will be up to $30 billion to help the program get started. In addition to the nine firms, 10 women-owned and minority-owned asset management firms were also seleted to take part as partners.

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White House (Image: Flickr)

Most economic experts believe that the road to recovery for the U.S. will begin when banks regain the confidence and the ability to start loaning money. Without a fluid financial world, both businesses and consumers will find it next to impossible to return to the prosperity of a few years ago.

The money used to purchase the toxic assets will reportedly come from the $700 billion bailout available to the federal government. With the public perception of the bailout money souring in recent months, it’s doubtful that the federal government will be able to throw even more money at the problem.

On the stock market, the White House purchasing toxic assets would likely create a spike in the stock prices of many banks and insurance companies.

Post from: EveryJoe

White House Eyes Purchasing Toxic Assets