What are problem assets?

Asset is any type of real estate or financial instrument to be a trade in wealth for the future and also to create wealth at present. In order to be called problem assets, they usually mean they depreciate and create wealth, but rather reduce them. In the United States government and the Ministry of Finance, "problem assets" mean specifically those that fall into one of the two widely defined categories.

first include mortgages owed to residential or commercial assets and any securities supported by these mortgages whose purchase by the government would help to borrow stability to financial markets. The second category includes any other securities or financial instruments whose purchase is considered to be the necessary secretary of the Ministry of Finance and the chairman of the federal reserve to stabilize the US financial market to buy the second category Jakyady.

These two classes of problem assets are in connection with the US government program, starting in 2008, known as the Troubled Assets Relief Program (TARP). As a result of the economic recession and the unprecedented number of domestic seizures that were observed in this period, banks that lent money for mortgages, and those companies that subsequently purchased mortgages suffered a large financial tribe. This was most of the problem assets that the US government planned to purchase as part of the TARP program. If these assets are purchased by the government, they allow companies that have owned them to improve the balance sheets and avoid bankruptcy or have to release a large number of workers.

Companies that have been rescued from immediate failure or insolvency by funds from Tarpby's legislation were able to remain in operation, but were also obliged to comply with the conditions set out in the use of these funds such as the executive limitsOmpensation. Effects, such as these and others that create TARP legislation, have been a source of discussion from the implementation of the program. The biggest goal of government purchase of problem assets was to stabilize the financial markets and allow banking institutions that had financial problems to borrow and borrow again. When these types of government programs work as intended, they become a rapid solution to the problems they solve, compared to the time frame, which the problem is naturally turned alone.