Representatives from at least 15 U.S. states discussed with a federal regulator the possibility of using their pension funds to buy troubled loans and securities, or toxic assets, the Bergen County Record in New Jersey reported.

The Record said pension officials from New York City, New York state, New Jersey and Connecticut met with Sheila Bair, head of the Federal Deposit Insurance Corporation, on Friday. Other states included Pennsylvania, California and Florida.

The paper said states are interested in investing in the Public-Private Investment Program for Legacy Assets because they think could provide a good return on investment.

The program, unveiled by the U.S. Treasury, would provide federal funding to form public-private partnerships that would buy up so called legacy assets, including commercial and residential mortgages and securities, the paper said.

(Reporting by James Kelleher; Editing by Xavier Briand)

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