TARP With A Twist - Understanding Good Bank, Bad Bank

The latest buzz on a way out of the financial crisis around Capitol Hill corridors, K Street and Wall Street is the idea of a "good bank" versus a "bad bank." So, we thought would be useful to remind you that TARP (Troubled Asset Relief Program) started out as a way for banks to sell bad assets to the government. Which is to say, it was a way for banks to dump the bad assets. Now, a good bank versus bad bank strategy is similar. Which is to say it is a way for bank to dump the bad assets.

Here's why you care: You are going to hear more about a good bank versus bad bank as a strategy in the days to come, so it is worth your while to get your arms around it. Fortunately, the Washington Post's Binyamin Appelbaum and David Cho did that in the Sunday Business section - which we think you may have missed. Take a moment to read it, and you'll understand not only what government officials and Wall Street is talking about, but also a historic reference to it as well. It is worth your time.