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Conference Call With Team SheBair

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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.
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."
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.