What Washington needs to do next: Ex-Fed's Posen


CentralBanking.com (CB): After appearing to drop the idea, the US administration is now reconsidering removing banks' toxic assets from their balance sheets. Why do you think this is?

Adam Posen (AP): It's legitimate to say that many people, myself included, didn't recognise how bad the balance sheets were. But once you do, it's hard to get away from saying that you have to be more intrusive, that you have to get a toxic assets programme in place and that you have to do it very explicitly.