On June 3, 2009, the FDIC announced a postponement of the Legacy Loans Program component of the Public Private Investment Partnership for open banks to sell loans. Formally, development of the Legacy Loans Program will continue, but the previously planned pilot sale of assets by open banks will be postponed. Accordingly, the government is once again exploring whether the purchase of troubled assets should be part of the Troubled Asset Relief Program. The federal government appears to have now completed a 540 degree rotation under the Troubled Asset Relief Program. Observers are keen to determine whether the government will land an unprecedented 720, possibly earning an X Games gold medal in the process.
Chairman Bair explained, “Banks have been able to raise capital without having to sell bad assets through the Legacy Loans Program, which reflects renewed investor confidence in our banking system. As a consequence, banks and their supervisorsRead More