Regulatory Arbitrage

Remember the PPIP program, where the US government is going to subsidize the purchase of financial toxic waste in an attempt to clear out banks' balance sheets?

Well, Sheilah Bair just said that banks will not be allowed to purchase their own toxic assets, which is a good thing, as it it turns the program into little more than a corrupt subsidy program to shake down the taxpayer.....Make than an even more corrupt subsidy program to shake down the taxpayer.

If you had told me 18 months ago that the most responsible member of Obama's economic team would be a Bush holdover, I would have wanted whatever it was that you were smoking.

H/T Calculated Risk.