The Treasury remains open to the idea of establishing a "bad bank" to warehouse the toxic debts held by the UK banking system, The Independent reports.
Speaking to the Treasury Select Committee, the Chancellor, Alistair Darling said the Government could use such an institution to cleanse the commercial banks' balance sheets and offer them a fresh start to their lending operations, in a bid to boost the economy. Mr Darling said: "There is the whole question how you deal with toxic assets...
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