(Reuters) – President Barack Obama’s revised bailout plan for the banking system is likely to rely in part on private sector investors other than banks to buy the contaminating assets that wiped out the capital of many banks, the New York Times said, citing administration officials.

The officials told the paper that they are counting on the profit motive of private investors like hedge funds, private equity funds and perhaps insurance companies to create a market for the assets.

The government would guarantee a floor value as a way to overcome investors’ reluctance to buy the assets, the officials told the paper.

A spokeswoman for the Obama administration did not immediately return a Reuters email seeking comment that was sent outside of normal business hours.

By trying to bring in private sector buyers to set prices for the distressed assets, and to take some but not all of the risk that the asset value will continue to decline, Obama officials evidently hope to restore confidence in the banking system, the paper said.

They will also try to avoid the politically sensitive course of having the government directly buy the assets with public money at prices that could turn out to be far higher, or lower, than their eventual value, the paper added.

The Obama administration on Sunday pushed back until Tuesday the announcement of the keenly awaited bank rescue plan as it pressed lawmakers to settle their differences over a huge economic stimulus package.

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NAIROBI, Kenya (CNN) — George Obama, the half-brother of U.S. President Barack Obama, has been arrested by Kenyan police on a charge of possession of marijuana, police said Saturday.

nspector Augustine Mutembei, the officer in charge, said Obama was arrested on charges of possession of cannabis, known in Kenya as Bhang, and resisting arrest. He is scheduled to appear in court Monday, Mutembei said.

He is being held at Huruma police post in the capital of Nairobi.

Speaking from behind bars, Obama denied the allegations.

“They took me from my home,” he said, “I don’t know why they are charging me.”

George Obama and the president barely know each other, though they have met. George Obama was one of the president’s few close relatives who did not go to the inauguration in Washington last week.

In his memoir, “Dreams from My Father,” Barack Obama describes meeting George as a “painful affair.” Barack Obama’s trip to Kenya meant meeting family he had never known.

CNN tracked down George Obama in August and found him at a small house in Huruma, a Nairobi slum, where he lives with his mother’s extended family. His birth certificate shows that he is Barack Obama’s half-brother.

The two men share a Kenyan father. In the memoir, Barack Obama struggles to reconcile with his father after he left him and his mother when he was just a child.

Barack Obama Sr. died in a car accident when George was just 6 months old. Like his half-brother, George hardly knew his father.

George was his father’s last child and had not been aware of his famous half-brother growing up.

Unlike his grandmother in Kogelo, in western Kenya, George Obama had received little attention from the media until reports about him surfaced in August.

The reports sprung from an Italian Vanity Fair article saying George Obama lived in a shack and was “earning less than a dollar a day.” Those reports left George Obama angry.

“I was brought up well. I live well even now,” he said. “The magazines, they have exaggerated everything.

“I think I kind of like it here. There are some challenges, but maybe it is just like where you come from, there are the same challenges,” Obama said.

Obama, who is in his mid-20s, said at the time that he was learning to become a mechanic and was active in youth groups in Huruma. He said he tried to help the community as much as he can.
Source

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