Complicated Reverse Auction May Aid In Bailout

by David Kestenbaum, NPR

One key part of the $700 billion rescue plan requires the government to take "toxic assets" off the books of financial institutions. The Treasury Department has said it will use market mechanisms where possible, such as reverse auctions. But a reverse auction, in which the government agrees to purchase a specific number of assets at the lowest price, is complicated.

Broadcast Dates

• Morning Edition, October 10, 2008