With the number of failed banks increasing, as well as passing the magic 100 mark, it’s apparently only a matter of time before Sheila Blair and Co. decide to securitize these failed banks into derivatives packages:
FT: The Federal Deposit Insurance Corporation (FDIC) has seen a growing volume of assets acquired from failed banks in its role as receiver of these institutions.
Michael Krimminger, special advisor for policy, office of chairman at FDIC and speaking at Information Management Network’s 15th annual ABS East conference in Miami said that FDIC has acquired more that [sic] 100 failed banks and it is likely that they may seek to do a securitization.
One can only imagine the mess that would be created out of toxic bank assets and swap agreements. Who knows what kind of financial alchemy we’ll end up seeing…