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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