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Can Credit Markets Thaw Without Toxic Assets Buyout?
With banks raising capital, is there still a need for a government-orchestrated effort to get toxic assets off bank books? WSJ economics editor David Wessel explains that while it is possible for a recovery to happen without removing the bad assets from the banks' balance sheets, the toxic assets remain a distraction. So the big question still remains: Do we need a "bad" bank to take these assets away from the "good" banks?
With banks raising capital, is there still a need for a government-orchestrated effort to get toxic assets off bank books? Greg MacSweeney is editorial director of InformationWeek Financial Services, whose brands include Wall Street & Technology, Bank Systems & Technology, Advanced Trading, and Insurance & Technology. View Full Bio