Wall Street banks trying to separate bad assets: report

NEW YORK (Reuters) - Wall Street banks are looking at ways to separate bad assets from the rest of their balance sheets to restore investors' confidence in the financial sector, the Financial Times reported on Thursday.

Wall Street banks could move at least some troubled assets off their balance sheets by shifting them into funds and selling large stakes in the funds to outside investors, the FT said, citing people familiar with the matter.

But getting banks to agree on a coordinated solution will likely be difficult, the FT said. Disagreements over terms prevented banks from successfully putting together a fund to bail out structured investment vehicles last year.

(Reporting by Dan Wilchins; Editing by Derek Caney)