Obama considers funds to buy bad assets: report

President Barack Obama looks on during a speech in North Carolina in this February 27, 2009 file photo.

NEW YORK (Reuters) - The Obama administration is considering a plan to purchase bad loans and other distressed assets by creating multiple investments funds, according to The Wall Street Journal, quoting people familiar with the matter.

The funds would be part of what the administration is calling a private-public financing partnership that would take distressed assets off banks' books. No decision has been made on the partnership's final structure, but a set of separate funds run by private investment managers is one leading idea, according to the Journal.

The managers, the Journal said, would have to put up a certain amount of capital while additional financing would come from the government. The government would share in any profit or loss.

(Reporting by Helen Chernikoff; editing by Carol Bishopric)