U.S. Unveils More Frugal Bank Plan

nytimes.com — For nearly a year, the question has vexed Washington and Wall Street: What do we do with all these impaired mortgage investments? The answer still, it seems, is wait and hope. After months of back-and-forth with the banking industry, the Obama administration unveiled a scaled-down version of its plan to buy troubled mortgage-related securities. The decision represents a huge gamble that banks have recovered sufficiently to help pull the economy out of recession.

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