Another Reason Stocks Are Powering Higher
publication date: Jun 5, 2009
This news from the Wall Street Journal got overlooked by many in the media.
The key point from the article, "FDIC Delays Program for Banks to Sell Bad Loans:"
Banks have been able to raise capital without having to sell bad assets through the LLP, which reflects renewed investor confidence in our banking system," said FDIC Chairman Sheila Bair.
The article discusses the fact that the FDIC on Wednesday June 3, 2009 announced it was postponing the "Legacy Loans Program" designed to rid banks of bad loans but said its development will continue.
"The FDIC plans a test run of the program this summer. The program resembles those used by the Resolution Trust Corp. during the savings-and-loan troubles in the 1990s."
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