Assets that have significantly declined in value, which no one will no longer buy. After the subprime mortgage crisis in the late 2000s, many of these mortgages became considered toxic assets. In this specific situation, the government has intervened by creating the Public-Private Investment Program, which is going to purchase back a significant portion of these toxic assets.
Related information about toxic assets:
- Toxic asset - Wikipedia, the free encyclopedia
When the market for toxic assets ceases to function, it is described as "frozen." Markets for some toxic assets froze in 2007, and the problem grew much worse in ...
- Toxic Assets Definition | Investopedia
An asset that becomes illiquid when its secondary market disappears. Toxic assets cannot be sold, as they are often guaranteed to lose money. The term " toxic ...
- What are "toxic assets"? - Yahoo! Answers
Let's say that Bob had a loan with Mellon Bank. The Loan is for $200,000 for a house and Bob pays 6% interest. The house is collateral, meaning ...
- What happened to banks' toxic assets? - Jul. 8, 2010
Jul 8, 2010 ... All those loan problems that once plagued U.S. financial institutions don't seem so noxious anymore.
- Are Toxic Assets Out of The Banking System? - CNBC
Apr 15, 2010 ... US financial companies still have more than a $1 trillion on their balance sheets, but analysts say they are unlike to stem the recent rally in ...
- We Bought A Toxic Asset - Npr
- Why Toxic Assets Are So Hard to Clean Up - WSJ.com
Jul 21, 2009 ... Securitization was maddeningly complex. Mandated transparency is the only solution.
- Spain approves "bad bank" for toxic assets - Markets - CBS News
Aug 31, 2012 ... Reform will allow the government to handle the country's toxic property investments and give the central bank more powers to shut down ...