The most striking part about this particular development is how totally unstriking it is anymore:
Some banks are prodding the government to let them use public money to help buy troubled assets from the banks themselves.
Banking trade groups are lobbying the Federal Deposit Insurance Corp. for permission to bid on the same assets that the banks would put up for sale as part of the government's Public Private Investment Program.
The lobbying push is aimed at the Legacy Loans Program, which will use about half of the government's overall PPIP infusion to facilitate the sale of whole loans such as residential and commercial mortgages.
In some circumstances, recursive patterns are considered elegant and deft. Signs of some fundamental harmony in nature or the universe. Finance is just not one of those disciplines. This is going to (start, endure and) end in tears.
This is priceless doublespeak:
Allowing banks to have it both ways would give them added incentive to sell assets at low prices, even at a loss, the banks contend. They claim it also would free up capital by moving the assets off balance sheets, spurring more lending.
Handing them billions of dollars with no expectation of repayment would accomplish the same goals.
Banks Aiming to Play Both Sides of Coin [The Wall Street Journal]