FDIC Opens Discussion with Private Investors on Failed Bank Assets
The Federal Deposit Insurance Corp. (FDIC) held a roundtable discussion yesterday over acquiring failed depository institutions and their assets. The roundtable was part of a six-month review of the FDIC Statement of Policy on the Acquisition of Failed Insured Institutions. The FDIC Board of Directors mandated the review process when the policy statement was adopted on Sept. 2, 2009. "Bringing responsible new investors into the banking system is an important step towards a strengthened banking system," said FDIC chairman Sheila Bair in a statement e-mailed to HousingWire. "In doing so, we must also make sure that new investment supports strong banking institutions for the long term and meets the fundamental principles applicable to the ownership of insured depository institutions." The FDIC said the roundtable, by providing an opportunity for open dialogue with interested parties, will help improve the application of the requirements of the policy statement. Public interest organizations, pension funds, private investors and investment managers were among those that attended. The FDIC Statement of Policy on the Acquisition of Failed Insured Institutions (download here) provides guidance to investors interested in acquiring or investing in the acquisition of failed banks or thrifts about the standards they will be expected to meet in order to qualify to bid on a failed institution. "Since the adoption of the Statement of Policy, qualified private investors in new banks and in partnership with existing banks and holding companies have successfully bid on and acquired failed institutions," Bair said. Write to Diana Golobay.