Insights
Client Alert
How to Buy Loans Originated by Failed Financial Institutions from the FDIC
March 23, 2009
Chris Daniel, Daniel Perlman, Todd Beauchamp and Azba Habib
Introduction
The Federal Deposit Insurance Corporation (FDIC) was created by The Banking Act of 1933 at the height of The Great Depression. While the FDIC has other corporate and regulatory powers (for example, the provision of deposit insurance), one of its most public powers is that of receiver, or conservator, for failed depository institutions (i.e. banks and thrifts). In sum, the FDIC has been acting as the receiver for failed banks for over 75 years and, hence, has a long history of engaging in the post-failure sale of the assets of these institutions in order to recover the maximum amount possible to settle the claims of the institutions creditors, including the FDIC.
Contributors
