• FDIC's Structured Loan Portfolio Sales from Failed Institutions on the Rise
  • October 22, 2009
  • Law Firm: Arnold & Porter LLP - Washington Office
  • 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