Yesterday, the FDIC announced that a previously planned pilot sale of toxic assets by banks pursuant to the Legacy Loans Program (LLP) "will be postponed." FDIC Chairman Sheila Bair stated that in light of the fact that "banks have been able to raise capital without having to sell bad assets through the LLP," that "banks and their supervisors will take additional time to assess the magnitude and timing of troubled assets sales as part of our larger efforts to strengthen the banking sector." As a next step, the FDIC plans to test the funding mechanism contemplated by the LLP in a sale of receivership assets this summer.