Bernanke revisits idea of toxic asset purchases

Ben Bernanke, the chairman of the Federal Reserve, on Tuesday mooted several ways in which American authorities could remove toxic assets from banks' balance sheets. He also said that more capital injections and guarantees may be required to ensure financial stability.

Bernanke told an audience at the London School of Economics (LSE): "A continuing barrier to private investment in financial institutions is the large quantity of troubled, hard-to-value assets which remain on institutions' bala

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