Who gets the good assets of a failed bank? Ask the FDIC

The FDIC issued a Covered Bond Policy Statement in preparation for banks to raise more capital. Not going into detail, this will allow specific investors (Goldman Saks possibly) to purchase the covered bonds where the backing collateral will actually be worth something. That leaves everyone else (mostly the taxpayer though the Fed) with collateral that is absolute garbage. Nice way for the well connected to clean out the good assets with no questions asked when a bank goes under.