FDIC "Test" Sale of Loans
From the same article (last post) in Reuters JPMorgan, others line up to throw off TARP yoke we find a discussion about the Federal Deposit Insurance Corporation:
Let's see how the test sale works - Can the FDIC get rid of some of these "pesky" "Troubled" Loans? - I will call them troubled even if they are not part of the "Troubled Asset Relief Program" or TARP!!! Laughing!
How to avoid the government restrictions while still working WITH the government, eh?!? Laughing!Separately, the Federal Deposit Insurance Corp is looking to launch its June pilot sale of banks' distressed loans without using TARP money to help private investors buy up the loans, a source familiar with government plans told Reuters on Tuesday.
The FDIC is looking to do a test sale to make sure that investors, banks and the public are comfortable with the mechanics -- without the complication of government co-investment -- before rolling out the full program.
Some potential investors have expressed concern that loan purchases done in partnership with government money from the TARP could expose them to executive pay restrictions and other TARP conditions.
Let's see how the test sale works - Can the FDIC get rid of some of these "pesky" "Troubled" Loans? - I will call them troubled even if they are not part of the "Troubled Asset Relief Program" or TARP!!! Laughing!
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