Bail out: Banks' toxic assets would be bought for TWICE their market value
Update
China banks ordered to halt lending to US banks
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Page last updated at 16:11 GMT, Tuesday, 23 September 2008 17:11 UK
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Henry Paulson on the plan to rescue the US economy
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BBC Business Editor Robert Peston said the US Treasury Secretary's proposal to buy bad mortgage debts from banks represented "the mother of all bail-outs".
He said that during the hearing Fed chairman Mr Bernanke disclosed that the Treasury would attempt to buy these debts from banks at close to their "hold-to-maturity" value, not the market value.
"In practice, it means banks who sell their debts to the Treasury would receive cash equivalent to something like twice the value in their books of these poisonous assets," our correspondent said.
Ben Stein wonders if subprime fiasco was set up to allow speculators to profit on its collapse
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