Manatt Partners Weigh-In on the End of PPIP for GlobeSt.com
"FDIC Backs Away from Toxic Debt Sales"
GlobeSt.com
June 5, 2009 - An article written by Manatt’s Harold P. Reichwald, Barbara S. Polsky, and Clayton B. Gantz for the firm’s June Distressed Asset Law Newsletter was excerpted in part for a front-page piece on GlobeSt.com, "FDIC Backs Away from Toxic Debt Sales." The GlobeSt.com article, which addresses the Federal Deposit Insurance Corporation’s postponement of their Legacy Loan Program, talks about diminishing prospects for the U.S. Treasury Department’s Public-Private Investment Program, citing the Manatt newsletter. "The cause of the death of the Legacy Loans program," they quote Reichwald, Polsky and Gantz as saying, "was a toxic combination of policy and politics which caused major equity players to fear that the combination of government audit powers granted in recently-enacted legislation and the concern that the expected private profit-making would somehow be painted publicly as unconscionable after the fact."
Read the GlobeSt.com article here.