As expected, the FDIC confirmed today that it is delaying the initial test of one of its toxic asset programs.The successful bank capital raises and renewed investor confidence in the banking system have provided FDIC Chairman Sheila Bair with enough evidence that the Legacy Loan Program can be placed in a holding pattern for now.
As a consequence, banks and their supervisors will take additional time to assess the magnitude and timing of troubled assets sales as part of our larger efforts to strengthen the banking sector
Banks were able to take advantage of the nearly vertical movement in the equity markets and opportunistically raise capital by equity and debt offerings, thereby avoiding having to sell toxic assets at distressed prices.
U.S. FDIC delays pilot sale of toxic bank loans [Reuters]
ppip will fail miserably
@1- really? you don’t say.
@3 wins
In the end they will face these write downs. Better to take a fifth of Boone’s and get it over with.
May Xenu bless you all on whatever endeavor you are endeaving.
the govt taking a back seat.. im shocked
I would have cancelled the test as well. A failed auction could be rather awkward.
- Fixed Income