Fed aids Treasury in toxic-asset removal

To support the Treasury's plan to rid banks of toxic assets, the Federal Reserve on Tuesday said that it will take some mortgage-backed securities on to its books from July.

The news was followed on Wednesday by US Treasury secretary Tim Geithner's announcement that the Treasury's own initiative would be up and running by early July.

The Fed said it would accept some so-called "legacy" commercial mortgage-backed securities that were issued before the beginning of this year under the Term Asse