Bad bank



noun
a financial institution set up to hold and manage underperforming assets owned by other banks
Contemporary Examples

He was talking about the “bad bank” concept being bandied about in Washington at the time.
Top Seven Attention-Hungry Doomsayers Duff McDonald February 10, 2009

Until the extent of “bad bank” assets are counted and valued, taxpayers will stay in the dark and on the hook.
Wall Street Whispers: Taxpayers Overpaid in Citi Bailout William D. Cohan November 30, 2008

It is a less-expensive and far more workable version of a bad bank, which would buy up the toxic material only.
Night of the Living Dead Banks Jeff Madrick March 5, 2009

According to one person with knowledge of the matter, the bad bank will likely be one aspect of a “kitchen-sink approach.”
Stop Bashing Wall Street! Charlie Gasparino February 1, 2009

Historical Examples

With so much “bad bank paper” in circulation, Speridionides is not likely to set a high price on his own scrip.’
Lord Kilgobbin Charles Lever

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