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Tue 03 Mar 2009Obama plan to buy toxic bank assets rallies world markets
STOCK MARKETS around the world rallied yesterday as investors welcomed the latest step in the Obama administration’s effort to rescue the financial system and make credit more easily available to businesses and consumers.
Treasury secretary Timothy Geithner said the US government would work with private investors, such as hedge funds and pension funds, to buy hundreds of billions of dollars in toxic assets held by banks and other financial institutions. Under the scheme, the government will match up to $100 billion of private capital to generate $500 billion in purchasing power but Mr Geithner said it could double in size later.
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