Large Bank Supervision Forum eBook

NONPUBLIC//FDIC INTERNAL ONLY

Available Transactions

Bidding Transactions

Characteristics:

Whole Bank Purchase & Assumption (P&A)

Substantially all of the assets and liabilities of the failed bank are transferred to the Assuming Institution. Loss Share may be offered.

Basic P&A with Loan Pools Similar to Whole Bank, but bidders can bid on different pools of loans.

Deposits and liquid assets are transferred to the Assuming Institution. Most assets stay in the Receivership.

Basic P&A

Other Transactions

Characteristics:

Assets and liabilities are transferred from a Receivership to a newly chartered bridge institution. FDIC charters a temporary bank to pay off insured depositors. Assets remain in the Receivership and are liquidated. FDIC pays off insured depositors via checks. Assets are liquidated. Expected to be the most costly resolution method.

Bridge Bank

Deposit Insurance National Bank

Payout

FDIC is required to choose the least costly resolution to the Deposit Insurance Fund (unless the systemic risk exception is invoked)

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