Can't please everyone

27 May 2009 By Richard Beales Follow @richardbeales1

The issue isn t just banks using government leverage to buy their own bad assets through the PPIP. The potential for conflicts extends to buying each others dross. But the scheme won t work if Treasury and FDIC set overly complicated rules. They need to settle for imperfection.

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Banking industry groups have been lobbying to be allowed to act as both buyers and sellers of assets under the US government's Public Private Investment Programme, the Wall Street Journal reported.

Lobbying groups and other interesting parties have submitted comments to the Federal Deposit Insurance Corporation on the Legacy Loans Programme, part of the PPIP. The details of the programme have not yet been finalized.

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