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Central banks assume and redistribute tail risk when purchasing assets or relaxing their collateral requirements.
Soon the German press was describing governments purchasing assets via their central banks as a "cash tsunami" or "printing money".
Mr. Paulson mobilized the big banks to find a way to rescue S.I.V.'s by purchasing assets from them.
Stanford immediately embarked on a push into the Latin American market, purchasing assets in Mexico, Venezuela and Ecuador.
"When we first asked for the TARP legislation in September, we were looking at purchasing assets," says Ms. Davis, the former Treasury spokeswoman.
The program was aimed at purchasing assets and equity from banks to strengthen them and encourage them to expand lending during a tightening credit squeeze.
Similar(36)
The Federal Reserve has begun purchasing asset-backed securities containing things like student loan and credit card debt.
It purchased assets equal to 7% of GDP spread over three years.
It is not necessary to purchase assets in order to use them.
The American Federal Reserve has purchased assets worth €3,900bn, the Bank of England around €500bn.
"We don't purchase assets with the intention that they won't become profitable," he said.
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