Heads I Win Tails You Lose

If ever you needed proof that the game is rigged here it is.

From the WSJ:

Federal Deposit Insurance Corp. Chairman Sheila Bair said Thursday she would be open to letting banks see some of the profits if they dump problem loans that ultimately recover some value.

The comments, made in a conference call with bankers Thursday, address a key industry concern with the government’s plan for ridding banks of toxic assets.

While bankers understand unloading troubled loans will help clean up their books, taking bargain-basement prices could cause immediate pain and transfer the prospect of any future recovery to the buyers.

The Treasury Department’s Public-Private Investment Program involves setting up investment funds to buy loans from banks. Ms. Bair said banks might be able to take an equity stake in those funds as partial payment for their loans, which would give them a payoff if the loans ultimately rise in value and would provide bankers with more incentive to sell troubled assets.

“We’d be open to comments on that,” Ms. Bair said.

I guess the fact that we’re putting a trillion large at risk┬áto hopefully get them out of the poor house isn’t enough. They not only want a bailout but they want a piece of our action if it works. If it doesn’t then, oh well, dig deeper taxpayer.

Do you want to use the F-bomb yet?

more: here

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