Pimco co-founder Bill Gross is jumping on board with Tim Geithner's
public-private toxic asset plan, giving the Treasury Secretary a big endorsement from the world's largest bond fund.
The co-chief investment officer of Pimco told Reuters that "from Pimco's perspective, we are intrigued by the potential double-digit returns as well as the opportunity to share them with not only clients but the American taxpayer," Gross said. "This is perhaps the first win/win/win policy to be put on the table and it should be welcomed enthusiastically."
While the participation of the giant bond fund is likely to help draw more investors from the private sector into the process, the ringing endorsement from Gross may be used by critics of the plan as evidence that it is just another government giveaway to Wall Street as well. One of the top criticisms of the plan is that the only reason private investors would participate is because all of the upside is on their end, while the government takes on nearly all of the risk. (See the reactions of
bloggers here and
economists here). -
George White See Reuters storySee Dealscape post on blogger reactionsSee Corporate Dealmaker on economist reactionsSee Treasury planVote on whether Geithner will keep his job
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