The troubled assets were sold to a shell corporation, which will raise money by selling bonds and stock.

He warned of further bank rescues as lenders struggle with €176bn in "troubled" assets.

While by far the largest part of the bank's troubled assets were problem loans, Freedom was also losing money on investments.

But many economists and other finance experts say that the government may soon have to take on troubled assets itself to resolve the credit crisis.

Second, it will sell billions of dollars in troubled assets, perhaps as much as $150 billion worth.

It also began an accelerated program to dump its troubled assets in Texas.

They say that financial institutions' troubled assets, such as loans for property and highly-geared companies, will take years to sort out.

Yet, there is still some skepticism if Taxpayers can buy troubled assets without having to overpay.

In return, the Government stripped the bank of nearly all of its troubled assets and provided tax concessions.

The agency will also keep $1.4 billion of Bright Banc's troubled assets.