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To: Wallace T.
That agency has set up a Deposit Insurance National Bank, so they will manage the assets of the failed bank.

If by 'they' you mean the FDIC as Receiver and not the DINB, I believe that to be correct. It appears that all that passed to the DINB were the insured deposits. The press release did say that an advance dividend would also be paid on the uninsured deposits, with a Receiver's Certificate for the balance of the unisured deposits.

My guess is that they did a DINB because it happened too fast to do anything else. Before it closed this morning, I thought they would do it at close of business today - I don't recall any going back into the 80s with a morning closing, there were a few where they closed a couple of hours before closing time. I also guessed wrong, I thought they would do a Bridge Bank. I was able to only find one other DINB (Citizens State Bank, New Baltimore Michigan (just before Christmas, 2009).

79 posted on 03/10/2023 7:23:43 PM PST by PAR35
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To: PAR35
The bank closings I went on usually started at 6PM on Friday. Over the weekend, assets would be transferred to a newly created bank, just like the DINB. Resolution specialists worked to identify assets that could/would be sold, the proceeds used to replenish the Deposit Insurance Fund.

When the news hit Friday, I emailed our CEO, and briefly described how the process works. Our real estate company is in acquisition mode. If SVB has any multifamily assets, the FDIC will be looking for buyers. He asked me to reach out to a director I worked for, to schedule a meeting.

For example, Trump's Treasury Secretary made his fortune from the closing of One West Bank in Southern CA. He was one of a group of investors who purchased it from the FDIC. They flipped it two years later, his share of the profits was $200 million.

92 posted on 03/11/2023 9:43:54 AM PST by Night Hides Not (Remember the Alamo! Remember Goliad! Remember Gonzales! Come and Take It!)
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