According to him, the Federal Reserve and Federal Deposit Insurance Corporation have created a public-private investment fund. The mechanism works consisted of the following: banks formed a pool of distressed assets, after What the Federal Deposit Insurance Corporation held an auction for the sale of troubled assets (of course, with a discount). If the price of the asset seller's suit, the private investor finance operations through the issuance of debt securities guaranteed by the FDIC. A further funding comes from state funds and private investor in a ratio of 6 to 1. And some investors get to control a pool of troubled assets. Must say that the plan until the end and was not implemented because the government failed to negotiate with banks on repurchase price of distressed assets. Switzerland In Switzerland, the Fund was established for special purposes of the Central Bank with filling of 60 billion dollars by the Central Bank (54 billion) of bonds and the largest bank in Switzerland, UBS AG (6 billion). In fact, the hybrid scheme was applied to the elements of the remediation of the bank and insurance company.
Managed funds were transferred to the problem assets at UBS $ 39 billion, and the government sold bonds of the bank (UBS), which can be converted into a 10% stake in the bank. Sweden Sweden the first of European countries, who began work on the state level with distressed assets – in the early 90s of last century. For this purpose, the creation of two financial companies with unlimited public funding. Bank assets were conditionally divided into 'good', 'problematic' and 'bad'. The first group of assets remain in the management of banks, the second – redeemed by financial firms, and the third – to be written off. Financial firms bought the banks troubled assets by the state, which is partially crossed the shares of banks (in effect, partial nationalization).