March 21, 2011
The US Treasury Department said on Monday it would begin to sell-off toxic assets worth an estimated $142 billion, in an effort to close another chapter of the financial crisis.
“We will exit this investment at a gradual and orderly pace to maximize the recovery of taxpayer dollars and help protect the process of repair of the housing finance market,” said Treasury official Mary Miller.
The department said it would offload up to $10 billion in mortgage-backed securities (MBS) — assets which bundle together large numbers of often distressed mortgages — each month.
The products, secured by state-backed mortgage giants Fannie Mae and Freddie Mac, were bought as part of the 2008-2009 financial sector bailout.