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To: DoctorBulldog

When I was in banking, it was pretty standard to “takeover” a failed bank or S&L on Friday after close of business.

This info was to be kept private until the bank was closed and all assets secured. Sometimes the bank itself had been seeking to merge or be aquired by another institution.

After due-diligence, if the potential buyer felt that there was too many bad loans,and the parties could not reach agreement, then the feds would step in.

Often they could then fashion a deal which would be more attractive to the buyer, and would still cost the FDIC less money than just taking over the bank (ie nationalizing).

During the S&L crisis, they got so good at it, that the S&L closed on Friday, and then reopened on Monday with a new name and barely a ripple to note the change.


8 posted on 01/29/2010 8:11:48 PM PST by greeneyes (Moderation in defense of your country is NO virtue. Let Freedom Ring.)
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To: greeneyes; NVDave

Thank you for all info. That certainly has helped me to understand what is going on with that FDIC list. I really appreciate it.

Cheers


9 posted on 01/29/2010 8:26:29 PM PST by DoctorBulldog
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