The Obama administration's plan to begin the flow of credit in the financial system among certain types of assets by creating multiple investment funds to purchase them , people familiar with the matter told the Wall Street Journal on Monday.

While no decision has been made about the final structure, one idea is to let private investment managers run the separate funds, deciding which assets to buy and at what prices, the report states.

Those managers would have to put up some of the capital to make acquisitions with additional financing coming from the government which would also share in the profit and loss, the Journal reported.

Government funds for the project would come from the $700 billion Troubled Assets Relief Program authorized last year to help avoid a major meltdown in the financial markets.

The government would attempt to minimize risk for private investors by possibly offerin non-recourse loans, the report explained.