Treasury could buy debt for 2 years under plan: report

WASHINGTON (Reuters) - The U.S. Treasury would have authority to buy whole loans, collateralized debt obligations and mortgage-backed securities under an evolving financial market rescue plan, CNBC reported on Friday, citing an unnamed Treasury official.

CNBC said Treasury's proposal would be to buy debt from only U.S.-based institutions and that hedge funds would not be able to sell debts to the government.

(Reporting by Tim Ahmann)