It appears that the FDIC just started requiring that banks deemed troubled by the FDIC must start reporting details of all its qualified financial contracts. (QFC)

What are QFC’s? Basically they are the big sh*&pile, MBS, CDS, etc.:

QFCs are contracts between a bank and a counterparty, and they include everything from securities and repurchase contracts to currency and credit default swap agreements – some of the same murky derivatives behind Wall Street’s biggest blowups.

Why does this scare banks:

Many banks still don’t know their exposure to these products or details about the counterparties, which they are also required to provide by the new ruling. The way Bair sees it, they don’t know because no one has ever forced them to know.

The bottom line:

If the FDIC rule passes, banks will have to be able to account for their exotic securities. These banks might have trouble.

Definitely, and it would have been far better that it had been done years ago.