graphic by Brooks Elliott

So here’s the good news about proposed bank toxic asset sales: we might not need them.

This from Sheila Bair, head of the FDIC, as reported on page one of this morning’s Financial Times. Reporting to you from the airport with an old fashioned technology, the FT on actual paper, sorry no link:

Banks have been able to raise capital without having to sell bad assets through the LLP [Limited Liability Partnership], which reflects confidence in our banking system.

The FDIC is said to maintain interest in testing the loan mechanism, but for standby basis and not for large scale use at this time.

Almost as surprising is one of the reasons for holding back: they think Congress might actually do something. I know, shocking….

The plan has fallen prey to concerns from potential investors and regulators and to waning interest from the banks themselves. Investors fear that Congress may retrospectively seek to limit their remuneration while regulators are beginning to doubt whether the plan is really necessary.

[egregious bold]

They’re afraid Congress might act! Hooray! Now let’s pile onto Jane and Howie’s latest attempt to get them to do the right thing on the supplemetal. We’re getting there.