The Federal Deposit Insurance Corporation (FDIC) may have to put the final Legacy Loans Programme (LLP) on the shelf in response to banks’ requests to buy toxic assets as well as selling them.
After submitting comment letters last week, various banks surprised the FDIC by requesting to participate as co-investors or buyers in the programme. The FDIC would have to draft changes to the LLP to prevent banks from inflating asset values by bidding...