FDIC-Assisted Asset Sales

Leveraging Opportunities and Minimizing Risks in FDIC Loss-Share Transactions

Recording of a 90-minute premium CLE webinar with Q&A

Conducted on Thursday, January 6, 2011

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide practitioners with an in-depth review of the FDIC's current asset sale process, the parameters of loss-share agreements, and evolving FDIC strategies for disposing of assets. The panel will outline how bidders and buyers can avoid potential pitfalls in acquiring assets from the FDIC.

Description

Earlier in the current financial downturn, most FDIC failed-bank resolutions were loss-share transactions in which the agency guaranteed 80% of potential losses and 95% of the losses over a certain threshold.

As the distressed-asset market started to improve, however, the FDIC changed how it disposes of failed banks and their assets. As the FDIC and investors grow more confident in the market, more dramatic shifts in the FDIC’s strategies for disposing of failed-bank assets are likely.

Listen as our authoritative panel of attorneys guides you through the FDIC's process of acquiring assets of failed banks and how bidders and buyers can avoid potential pitfalls.

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Outline

  1. FDIC bid process
    1. Marketing and bidder contacts
    2. Due diligence
    3. Bid selection
    4. Types of transactions
    5. Assets typically excluded
  2. Loss-share agreements
    1. Typical terms of agreement
    2. First loss tranche
    3. Threshold amount
    4. Difference among loan types
    5. Reporting, loan modification and audit requirements
  3. Evolving FDIC strategies
    1. Change in terms of loss-share agreements
    2. Impact of changes on the investor
    3. FDIC post-sales audits

Benefits

The panel will review these and other key questions:

  • What does the FDIC require of banks in the loss-sharing agreement and what steps should acquiring banks take to assure asset resolution?
  • What are the peculiar due diligence challenges in FDIC-assisted transactions?
  • How are the FDIC’s loss-sharing transactions evolving and what impact will this have on investors?
  • Will the FDIC become more open toward private equity and will bids include multiple failed banks?

Faculty

Kanaly, Mark
Mark C. Kanaly
Partner
Alston & Bird

Mr. Kanaly's practice focuses on transactional and regulatory issues confronted by companies in the financial...  |  Read More

Monroe, C. Robert
C. Robert Monroe
Partner
Stinson

Mr. Monroe serves as counsel to well over 100 financial institutions. He has significant experience in matters...  |  Read More

Gaines Dittrich
Gaines Dittrich
President/CEO
Dittrich and Associates

He assists banks with problem assets (Special Assets), bank restructuring, policies and procedures, regulatory...  |  Read More

Michelle Banks
Michelle Banks
Business Development Manager
SolomonEdwardsGroup

She is the Business Development Manager for the firm’s Financial Services Consulting Practice in the Southeast....  |  Read More

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