Under the Federal Deposit Insurance Act, the Federal Deposit Insurance Corporation (FDIC) has a three-fold mission to (1) insure deposits, (2) examine and supervise state-chartered financial institutions, and (3) manage receiverships. Following the closure of an Institutions by their chartering authority – the state regulator, the Office of the Comptroller of the Currency, the FDIC responds to protect insured depositors, and manage the disposition of bank assets. The FDIC has several options for resolving institution failures, but the one commonly used is to sell deposits and loans of the failed institution to another banking institution. Customers of the failed institution automatically become customers of the assuming institution.
Bank Resolutions & Receivership
ABA/FDIC Conference Call
ABA hosted a conference call on Wednesday, September 2, 2009 with representatives from the FDIC Division of Resolutions and Receiverships to educate banks on the procedures for whole bank acquisitions and loss share agreements. The call reviewed the franchise marketing process, bid list criteria, due diligence, and structuring transactions, including whole bank, whole bank with loss share, purchase with assumption (P&A) with optional loan pools, and clean P&A.
Download the ABA/FDIC conference call materials.
If you have questions about Loss Share Data Reporting Requirements: