FDIC Shared-Loss Update: Fewer Failures, Longer Timeframe
Executive Summary: While the number of failed banks in 2010 may be less than previously thought, failures will continue well into 2011. The anticipated slowdown in failures may mean that…
Executive Summary: While the number of failed banks in 2010 may be less than previously thought, failures will continue well into 2011. The anticipated slowdown in failures may mean that…
Summary: Banks need to operate with greater consistency and transparency across their institutions as one part of avoiding yet another banking crisis. Senior management should consider a simple but proven…
Executive Summary: More banks are beginning to think about growth, whether organically or through acquisitions. Over the past 18+months, many banks have ignored growth, operating with an understandable focus on…
Executive Summary: Acquiring entities that win shared-loss bids for failed banks need to appreciate and anticipate the FDIC’s expectations while managing the acquired entity to maximize benefits to the banks’…
Executive Summary: A stagnant economy, high levels of delinquencies, and limited excess cash are all factors contributing to the no or low growth scenarios that most banks face. However, stakeholders,…
Executive Summary: The recent Bank Director’s “Acquire or Be Acquired” conference indicates that the industry’s near-term management options and organic growth opportunities are limited. However, acquisition activities will increase. Two…
Executive Summary: Excellent reporting and information management capabilities are critical for managing FDIC Shared Loss Agreements (SLA) effectively and cost efficiently. However, many banks take on these transactions without understanding…
Executive Summary: 2010 provides an extraordinary growth opportunity for those banks and investors that enter into FDIC-backed Shared-Loss Agreements. However, optimizing this “once in-a lifetime” opportunity requires a disciplined approach,…
Executive Summary: FDIC Shared-Loss Arrangements with banks and investors should increase significantly in 2010. To ensure strong productivity and to optimize returns, buyers of these failed banks need to implement…
Executive Summary: Entering into FDIC-backed Shared-Loss Arrangements provides banks with an opportunity that offers highly attractive economics. However, optimizing returns from a shared-loss arrangement can be complex. Further, the five-ten…