The plan, the Term Asset-Backed Securities Loan Facility, or TALF, is designed to circumvent credit channels that have been stopped up. Under the Citi plan, borrowers will be allowed to make reduced mortgage payments for three months, with the average required payment for most qualifying customers pegged at $500 a month. Investors with an ear to the ground for any signs the government may act to get bad assets on bank balance sheets heard some faint rumblings Monday.
Citigroup Inc. announced Tuesday a plan to help recently unemployed borrowers who are delinquent on their mortgages stay in their homes. "Thousands" may be eligible to take part in the Homeowner Unemployment Assist program in the next two years, Citigroup said, calling it another way in which it can help people avoid foreclosure. The managers would have to put up a certain amount of capital. Additional financing would come from the government, which would share in any profit or loss, the report added.
According to a Wall Street Journal report, the Obama administration is considering creating multiple investment funds to purchase the bad loans and other distressed assets that lie at the heart of the financial crisis. Citing unnamed people it described as familiar with the matter, the paper said one leading idea on the administration's previously announced plan to buy up to $1 trillion in distressed assets is to establish separate funds to be run by private investment managers.
Citigroup Inc. announced Tuesday a plan to help recently unemployed borrowers who are delinquent on their mortgages stay in their homes. "Thousands" may be eligible to take part in the Homeowner Unemployment Assist program in the next two years, Citigroup said, calling it another way in which it can help people avoid foreclosure. The managers would have to put up a certain amount of capital. Additional financing would come from the government, which would share in any profit or loss, the report added.
According to a Wall Street Journal report, the Obama administration is considering creating multiple investment funds to purchase the bad loans and other distressed assets that lie at the heart of the financial crisis. Citing unnamed people it described as familiar with the matter, the paper said one leading idea on the administration's previously announced plan to buy up to $1 trillion in distressed assets is to establish separate funds to be run by private investment managers.
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