WASHINGTON - The National League of Cities is urging the Treasury Department to purchase "troubled assets" resulting from Lehman Brothers' bankruptcy filing that are still held by local governments.

The group made the plea in a July 31 letter to Treasury Secretary Timothy F. Geithner, noting that governments in about 20 states have lost an estimated $1.7 billion in Lehman securities that were highly rated but are now troubled assets due to Lehman Brothers' collapse.

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