Mark-to-market. Mark-to-mystery. Now, Mark-to-Madoff.
The Obama administration is close to deciding on a plan to purchase bad — or non-performing and illiquid — assets from banks, according to industy (sic) sources. The plan could be announced early next week.
The so-called “bad bank” plan, would address the key problem of how to price the assets by using a model-pricing mechanism. The model would take account of the government's ability to hold onto assets, even to maturity, and pay for the (sic) them with cheap funding.
than current market prices for the securities.