FDIC's Head Outlines What's Likely to Happen Next

Here's the headline: More tax dollars are needed, but tax payers may end up making money.

For our MBA-Wannabes here's why you care: We've noted a number of times that you can agree/disagree with the Federal Deposit Insurance Corporation's Chairwoman, Sheila Bair, but what you have to give her and the FDIC credit for is offering up early in the financial crisis a very detailed rescue plan. Many of the elements in place now come from Bair's plan. That's why it is worth your time today to read Washington Post reporter Binyamin Appelbaum's story about what Bair thinks needs to happen next. Not surprisingly it all comes back to how and when banks can sell assets. Recall that the Treasury promoted a public/private partnership to buy the assets dragging down banks' balance sheets. The shape of that partnership is what is being discussed in this article.

For our MBAs here's why you care: The plan to buy/sell bank assets could be detailed as early as next week.