There is an FDIC Conference Call for Bankers (and Investors now) discussing Legacy Loans Program under the newly announced Public Private Partnership, scheduled for noon.

1-888-790-3946

Passcode: 9857969

11:51: The hold music is...Tears In Heaven.

11:55: Now it's the theme song from Trading Places ("Overture, Marriage of Figaro"). No joke.

12:06: Bair: "We don't have all the answers now, so we want to hear from you. Put your thinking caps on."

Questions:

Franklin Card: In terms of starting the program, do you have a time range for when you hope to be up and running? A month? Couple months?

FDIC: Not before we get public comments. We put a end date on that of April 10. We're anxious to get it moving as quickly as possible. We need the input before we give a specific time frame.

Card: Is price discovery here going to impact accounting treatment for similar assets?

FDIC: Only if there are enough transactions to give several data points, and you have to remember that the leverage distorts the pricing to some degree.

Missed questioner's name: Will participating in the program potentially put a hole in capital to the extent we have to remark assets? How will this effect our regulatory capital requirements? Will the requirements be changed to alleviate this problem?

FDIC: Uh... maybe.

Missed questioner's name again: Will the FDIC, I don't want to use the word 'coerce', but use this to nudge the bank along to sell the assets?

FDIC: The supervisory process is already there.

Guy: Can you give us a headcount of people you have devoted to this?

FDIC: No, next question.

'Nother Guy: Has it been determined if there are bidders, and what the qualifications are to bid?

FDIC: We're soliciting comments on that. There will be qualifications.

Dude from JPMorgan: breathing into phone

Operator: Sir, your line is open.

Dude from JPMorgan: Hello? Hello? Hello?

Operator: Sir, your line is open.

Dude from JPMorgan: Hello?

FDIC: We're here. Ask your question.

Dude from JPMorgan: Sorry, I'm an analyst at JP Morgan who doesn't know how to use a phone.

Guy from DE Shaw: What level of interest have you seen from the banks to participate in this process so far. If you're not seeing a lot of participation, will you force people to?

FDIC: We just started this monday so...but yeah, people have told us they're interested.

RBC Capital Markets: Will unaccepted bids impact mark-to-market marks?

FDIC: Depends.

RBC Capital Markets: If not enough banks want to get involved, is there something you can do to force encourage them to?

FDIC: We're seeking comment on that.