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FDIC's Structured Loan Portfolio Sales from Failed Institutions on the Rise |
October 22, 2009
Previously published on October 2009
Nearly 100 financial institutions have failed this year. The Federal Deposit Insurance Corporation (FDIC) is typically appointed receiver for a bank or thrift when it fails (failed institution). The FDIC is required by statute to maximize the recovery on the assets of the failed institution and minimize the impact on the Deposit Insurance Fund (DIF). In most cases, the FDIC, as receiver, markets and sells a portion of the assets of the failed institution to another financial institution immediately upon its failure or directly sells the loan portfolios to the public through selected brokers. In some cases, however, the FDIC retains some of the assets in the receivership and subsequently sells them through structured transactions, including joint ventures and FDIC-provided seller financing. www.arnoldporter.com
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The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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