Robert G. Slugg Real Estate Law Blog on Lawyers.com

I, like most, have been following the government's actions regarding the financial crisis that has befallen the United States and, in fact, the entire global economy.  The Treasury Secretary has now announced that the US will spend, initially, up to $500 billion to buy up, in partnership with public investors, the "toxic assets" being currently held by the banks.  The goal is to unfreeze the credit flow.

I am searching for the working definition of "toxic asset", as whatever that term does or does not encompass will have as yet unforeseen consequences for us all.  Does it include the bonds that result from securitization?  Any particular tranches?  Does it included defaulted notes?  Or even the real estate that secures these items?  The answers hold keys for us all. However, I have not been able to get even a working definition of "toxic asset". 

Anybody that has insight/information on the above - it would be much appreciated if you are willing to share.

Bob Slugg