The U.S. Treasury Department on Monday detailed a plan designed to help investors purchase $500 billion worth of toxic assets that remain on bank balance sheets. The program will use $75 billion to $100 billion in capital from the toxic asset relief program, or Tarp, and capital from private investors. Under the plan, the Treasury and private capital will provide equity financing and the Federal Deposit Insurance Corp. will provide a guarantee for debt financing issued by the public-private investment funds to fund asset purchases. "The goal of this program is to restart the market for legacy securities, allowing banks and other financial institutions to free up capital and stimulate the extension of new credit," the Treasury said in a news release.
