Banks will not be allowed to buy their own assets

“Banks will not be allowed to buy their own assets,” through the PPIP, said Joseph Jiampietro of the FDIC, speaking at a SIFMA-PREA conference in NYC and noting that there has been some confusion around this issue. Also, he said the FDIC met with several pension funds and mutual funds and generally there was a sense that investors and banks were “reluctant” to participate if TARP funds were involved. James Wigand of the FDIC said investors did not want to subject themselves to the risk of legislation if they used government funds.