FDIC delays program for banks to sell bad loans

Bloomberg Article - Click this Link

I am not surprised by this as I never thought the program would work as banks would not price their assets at a point where investors would buy them (low bid / high ask - no trade!). Additionally, if banks sold into this Legacy Loan Program it would not have provided capital (contrary to what the media puppet heads would tell you) unless they sold their assets for more than they were on there books at (which is unlikely). The program would have freed up some liquidity, but not increased capital. In fact, it would have more likely decreased capital as they would have had to sell at a price below the booked value and take a loss. That's why this program was DOA although the financial media got giddy about it. It's interesting though as this was one of the catalysts for the monster bank rally and now that the banks have been able to raise capital there is no need. Was this all in the script?