New bailout planned
The federal government, in what could prove to be its most comprehensive effort yet to contain the financial crisis, is poised to establish a program to let banks get rid of the mortgage-related assets that have been hard to value and harder to trade.
Leaders from both the House and the Senate were briefed on Thursday evening by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke.
There's precedent for the federal government taking on troubled assets from the private sector. In the 1930s, the Home Owners Loan Corp. was set up to issue bonds to refinance borrowers. Then during the S&L crisis Congress set up the Resolution Trust Corp. to sell assets of failed banks.
Comment: Read about it here: Savings and loan crisis and Resolution Trust Corporation