Change Creates New Opportunity:
The Latest Developments in FDIC-Assisted Acquisitions
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity."1
Since the FDIC began using its receivership and loss-share arrangement for failed banks, veterans of FDIC-assisted acquisitions agree: the only thing constant about the process has been its constant change. The FDIC continues to modify and evolve its protocol for resolving failed banks with the goal of creating in each transaction the least cost solution to the FDIC insurance fund. This has required savvy potential bidders for failing institutions, both first-time bidders or those bidding again after participating in earlier rounds, to ensure they have a complete and up-to-date understanding of the most recent changes to the FDIC's process. Armed with this knowledge, bidders can evaluate how the changes in the rules affect the economics, execution risk and integration dynamics of these novel and complicated purchase and assumption transactions.
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Schiff Hardin LLP provides services to banks, savings associations and other types of financial institutions nationwide and internationally. In addition to our traditional strengths in mergers and acquisitions, securities and financings, bank regulatory compliance, and trust department counseling, we have a particular and increasing focus on corporate governance and fiduciary litigation. Our Finance Group also supports our financial institutions clients in all aspects of their credit and lending businesses, and our Securities and Futures Regulation Group assists them in their securities, investment management and commodities-related businesses. We represent some of the largest banking organizations in the U.S. and overseas, and many community banks and thrifts.
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