America's Toxic Debt

I notice that the US administration is soon to announce the formation of a "Bad Bank" to acquire the bad debts which the various banks in the US created by their loose practices. Rather than the new "Bad Bank" holding on to the toxic debt until conditions improve and then sell them - hopefully at a profit for the poor old taxpayer - (all this while the various banks, now relieved of their toxic debt, go on their merry way!!) keep the banks responsible for them all the way through the system.

Suggestion: That the US administration highlights each debt from each bank and merely holds them in TRUST until the banks themselves can repurchase the debts their bad practices accumulated in the first place. This may be rough justice but it IS just and it IS fair. This would ensure that the executives involved would have to bear the consequences of their actions and it would certainly put a brake on their actions. Say put a ten year limit on the TRUST after which the banks must repurchase the loans from the TRUST.

The banks would no longer have the drag of the debts on their balance sheets and would then be able to fight the good fight to get back on track - which, in any event, is what the highly paid and highly skilled executives are paid to do!!