Introduction to Problem Banks eBook

Overview of an Orderly Bank Closure

Simultaneously, the bank is out looking for a solution, either a capital investor or investors or a merger partner.

• Often called parallel paths

Possible Outcomes 1. FDIC finds a winning bidder, whole bank. With or without loss share.

2. FDIC finds a winning bidder, partial bank. 3. FDIC finds a bank to payout the depositors. 4. FDIC sets up a bridge bank.