Federal Deposit Insurance Corp. Chairman Sheila Bair said Thursday that her agency will offer initial loan packages to investors in June as part of a federal plan to expunge toxic assets from banks' balance sheets.
The first phase of the FDIC's Legacy Loans Program will be a pilot sale of loans to test the program's "mechanics" and "allow for public observation and input — consistent with the FDIC's commitment to openness and transparency throughout this process," Bair said in a statement.
She said some banks have said they will participate in the test, which Bair first announced in remarks at a conference Thursday.
The test will "help guide and build the foundation for the larger program," Bair said in the statement.
