[spunkets]

"I wonder if there is anything to keep the banks from bidding up their assets?"

From the treasury: "...the FDIC will employ contractors to analyze the pools and will determine the level of debt to be issued by the PPIF that it is willing to guarantee."

Then an auction will be held. Bubble forces would result in over valuations abd bids.

[D-fendr]

Thanks very much. This is mostly over my head.

As is this discussion:

http://www.nakedcapitalism.com/2009/03/investor-on-private-public-partnership.html

Don’t know if you’ve seen it, or would care to, but it’s a discussion about gaming the program.