Julian Robertson for the Bad Bank Plan
The main confusion I have is on the mark to market issue. Its very unclear in my mind what banks have marked down and how hard they would get hit if they sold at these levels. In general though, the plan will have issues if banks are forced to sell at prices lower then the economics generated by the toxic loans. Would you sell your house for less then the rent it generates just because you found one party willing to buy it? If the government really wanted to solve this crisis, they'd just go ahead and pay up and get this over with. In general though, Robertson and Roche are correct that this is the only way. Obama get it done already!