What a stupid idea.......investing in failure with perfectly good money.
Only way I’d be investing in some of these wrecks is if I get to enforce strict civil liability upon them PERSONALLY for any mis-statement on the financial statements, or misleading predictions/projections given to investors.
I want a contractual piercing of the corporate wall, so that they have a direct, personal stake in making sure that they do their job.
Since there’s nothing stopping private investors from buying “the contaminating assets that wiped out the capital of many banks” right now, the government is either planning on shoveling tax dollars to Wall St. hedge funds or relying on pixie dust and magic unicorns to bring in private capital.