So who will bid, and why are those bidders kept secret? Because the very banks who are holding toxic crap at 85% or better in Level 3 hidyholes, are going to find a way (hedge, 3rdparty, direct, ect) to bid on their own crap they know the market will only value right now at 35% (the spread is huge). They will get the taxpayer via the FDIC to cover the spread because their exposure won’t be more than 10%. The way the banks look at it, this is a way to get the spread to move as close to par as possible, with the gov’t taking all the risk. If the banks selling the trash can be prevented from buying/manipulating the trash can be kept out, this might work, but I do not see that happening. This is just a complex and evasive way to get the banks to get their garbage out of level 3 caves with the gov’t buying and storing it.
