Toxic Asset Plan Foresees Big Subsidies for Investors - (The "Investors" Will Again Be the Banks)

The New York Times Edmund L. Andrews, Eric Dash and Graham Bowley WASHINGTON — The Treasury Department is expected to unveil early next week its long-delayed plan to buy as much as $1 trillion in troubled mortgages and related assets from financial institutions, according to people close to the talks.

The plan is likely to offer generous subsidies, in the form of low-interest loans, to coax investors [read "banks"] to form partnerships with the government to buy toxic assets from banks.

Many investment executives [again read "banks"] said they were worried that participating in any bailout program would expose them to political wrath and potentially steep new restrictions on their own pay.

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