The Federal Deposit Insurance Corporation is planning to issue $1.8 billion of guaranteed asset-backed securities, which market participants hope will jump-start the securitization market. But it may be too early for such optimism.

"The plan calls up memories of the savings and loan crisis of the early 1990s when the federal government created the Resolution Trust Corp to dispose of assets," Reuters wrote on Monday. "It could also awaken a market that has been largely frozen for two years, except for government-sponsored programs of Fannie Mae and Freddie Mac."

However, based on asset quality data, I'm not so sure the deal -- which is expected to sell this week and will be backed by residential mortgage assets of failed banks seized by the FDIC, according to IFR -- is really such a big step toward restoring confidence in securities so closely tied to the financial meltdown.

Not only have these mortgages already helped push banks into failure, they aren't exactly on the path to recovery yet either.

Asset quality indicators severely worsened in the fourth quarter, according to an FDIC report released last week. Among FDIC-backed banks, net charge-offs, which are total loans and leases considered uncollectable less amounts recovered on those previously charged off, increased 37.2 percent compared to the fourth quarter 2008.

The annualized net charge-off rate reached 2.89 percent, the highest quarterly rate reported by the industry in the 26 years such data has been available.

The largest increases occurred in residential mortgage loans, credit cards and loans to commercial and industrial borrowers.

Additionally, in the past two years, the numerous securitized transactions backed by the government (think Fannie and Freddie) haven't brought back non-guaranteed mortgage-backed securities, so why would this FDIC deal be any different?