I haven't read that much coverage yet on the new Treasury fund, so has anyone read how the treasury intends to price these assets? By the internal financial models used by the banks themselves?
There hasn't been an official remark on this issue. My guess is that they'll take the total sum of assets that banks wish to unload and divide it by 700 billion LOL. The banking system has become so incestueuse that this should be seen a tax payer funded cash infusion to prop up the entire system. It's not a takeover that accurately reflects the value of the concerned assets. The 700 billion is probably the governments estimate of how much it takes to have our banks operating for another day.