Introduction to Problem Banks eBook

Overview of an Orderly Bank Closure

Step 1 • Examination results reveal serious problems and viability of the bank is threatened. • The chartering agency (State or OCC) contacts FDIC-DRR and a projected failure date is set.

Overview of an Orderly Bank Closure

Step 2 • DRR obtains a download from the bank and prepares a data room for bidders to conduct due diligence. • Banks that meet certain criteria are invited to bid. • A winning bid is selected based upon the lowest cost to the fund