'Rubbish Banks' were used successfully in the Nordic countries in the early 90s. On a smaller scale of course, but as I understand it, a decade and a half later, both Sweden and Finland managed to reprivatize the assets without overall losses.

Finland Offers EU Experiences in Financial Crisis Management

In Vanhanen's view, pumping more money into economic stimulus is not the right way to fight a recession. Instead, he calls for going into the core of the crisis by cleaning away bad credit.

However most of the acquired 'rubbish' was still 'performing', but needed additional capital, reorganization and market consolidation.

You can't be me, I'm taken