January 29, 2009 / 6:31 PM / 11 years ago

Schumer: bad bank estimates go up to $4 trillion

WASHINGTON (Reuters) - The cost of the government setting up a “bad bank” to buy up toxic assets from struggling U.S. banks could range as high as $4 trillion, according to some experts, Sen. Charles Schumer said on Thursday.

“There are some estimates that if you do a full good bank, bad bank, that it ends up being as high as three trillion dollars, and that’s a lot of money that could mess up lots of other parts of the financial system,” Schumer told reporters.

“I’ve talked to various experts. The estimates vary, from one to four,” the Senate Banking Committee member said.

Asked if banks need $2 trillion to $3 trillion in additional bailout funds, Schumer said: “No, not necessarily.”

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