1.  FDIC May Let Investors Buy Toxic Assets Without Treasury Stake – By Rebecca Christie – … The proposal reflects officials’ efforts to make the program more attractive to hedge funds and other investors fearing government attempts to impose limits on their pay. Regulators are hoping the initiative will bolster lenders’ capital levels after stress tests to gauge their health are completed next week. … – Bloomberg

2.  Fed Said to Be Close to Offering Five-Year TALF Loans for CMBS – Scott Lanman and Sarah Mulholland – … .  helping restart markets for commercial mortgage-backed securities, while protecting the Fed’s flexibility to raise interest rates in the broader economy once consumer demand recovers.  “It continues to illustrate that it’s just a patchwork quilt of trying to shore up whichever asset du jour happens to be in trouble,” said Julian Mann, a manager of asset-backed bonds at First Pacific Advisors LLC in Los Angeles. … – Bloomberg

3.  SEC Chief Schapiro Seeks Rulemaking Authority Over Hedge Funds -  Jesse Westbrook – U.S. Securities and Exchange Commission Chairman Mary Schapiro wants authority to regulate what hedge funds can buy and how much money they can borrow to maximize bets, saying registration falls short of what’s needed to police the $1.33 trillion industry. – Bloomberg

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Cramdown Defeat: Senate Refuses to Let Judges Fix Mortgages in Bankruptcy - STEPHEN LABATON -  NY Times
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More Wall Street Bashing After Cramdown Amendment Defeated – Posted by Tyler Durden – Zero Hedge

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Ginnie Mae President Says Get Prepared For Reverse Mortgages – John Yedinak – … Murin also advised financial planners to be prepared to help their clients with reverse mortgages.  He said reverse mortgages would make increasing sense for homeowners in their 70s or older who are living longer and whose retirement savings have been squeezed by the stock market’s fall and rising health care costs.  “I think more and more people will be coming to you asking about them,” he said.  According to Ginne Mae’s reports, the GSE has issued $313 Million worth of HECM MBS in 2009. … – Reverse Mortgage Daily