This morning Treasury Sec. Geithner briefed reporters on the Obama Administration's plan to deal with banks' toxic assets: The Public-Private Investment Program.  And the Treasury Department has released a white paper on the plan.  Here's the overview:

Troubled real estate-related assets, comprised of legacy loans and securities, are at the center of the problems currently impacting the U.S. financial system. The Financial Stability Plan, announced on February 10th, outlined a broad approach to address this issue via the formation of Public-Private Investment Funds (“PPIFs”). Today Treasury is announcing the Public-Private Investment Program under which it will make targeted investments in multiple PPIFs that will purchase legacy real estate-related assets.

Addressing the problems created by legacy assets should help to improve the health of the financial institutions where they are held, leading to an increased flow of credit throughout the economy, and helping improve market functioning in the near-term. Investments made by Treasury under the Public-Private Investment Program are intended to complement the other components of the Financial Stability Plan that have been announced, including the Capital Assistance Program, the Homeowner Affordability and Stability Plan, and the Consumer and Business Lending Initiative, continuing the Obama Administration’s efforts to improve the stability and functioning of the financial system.

You can read the full white paper here.  The Treasury has also put out a helpful fact sheet here.