Of course, there is no shortage of toxic financial assets. They are clogging the financial system and putting incredible pressure on global banks.
Typically, such things get bought up. But, with little visibility and the complexity of modern financial instruments, it's been tough to attract bottom-fishers into the market.
Yet, according to U.S. Treasury Secretary Timothy Geithner, it's important that private operators swoop in.
Well, interestingly enough, it looks like there are some bites. For example, Wilbur Ross said he would be interested in some deals (this is according to an interview with Reuters). Keep in mind that he's built a billion-dollar fortune from toxic deals. And, he's pretty savvy when leveraging the help of the federal government.
Ross is probably not the only one. Bear in mind that there are a variety of well-capitalized private equity firms that are seeking out bargains.
But, it's likely to come at a steep price – and at the expense of the U.S. taxpayer. In other words, expect some level of down-side protection as well as other sweeteners. However, this may be the price to pay to clean up the huge mess in the financial system.
Tom Taulli is the author of various books, including The Complete M&A Handbook
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
