March 23 (Bloomberg) -- Bill Gross said Pacific Investment Management Co., the world’s biggest bond manager, will participate in a U.S. government plan to remove toxic assets from the books of the nation’s banks.

“This is perhaps the first win/win/win policy to be put on the table,” Gross, co-chief investment officer of Newport Beach, California-based Pimco, said today in an e-mailed statement. “We intend to participate and do our part to serve clients as well as promote economic recovery.”

Treasury Secretary Timothy Geithner said today that the government will finance as much as $1 trillion in purchases of devalued real-estate assets, using $75 billion to $100 billion of his department’s remaining bank-rescue funds. The Public- Private Investment Program will also rely on debt guarantees by the Federal Reserve and Federal Deposit Insurance Corp.

Gross said in an interview with Bloomberg Television that Pimco is interested in buying whole loans and managing funds that purchase mortgage-backed securities in the Treasury plan.

Pimco, owned by Munich-based Allianz SE, manages $747 billion in assets. Pimco was selected to manage other programs for the government, including one to purchase mortgage-backed securities.

Gross said the financial system will be in need of more government assistance, even with the financing outlined by the Treasury Department today.

“There is probably a few more trillions to go in terms of cleansing the balance sheets of banks,” Gross said.

BlackRock Inc. Chief Executive Officer Laurence Fink said today that his New York-based company also will take part in the Treasury plan.

To contact the reporters on this story: Sree Vidya Bhaktavatsalam in Boston at sbhaktavatsa@bloomberg.net.

Last Updated: March 23, 2009 13:39 EDT