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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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To: Night Hides Not
As things got more computerized and they got efficient enough that they could frequently do a Thursday closing with the assuming bank re-opening Friday morning based on the computer data. Folks then still worked through the weekend and there was a settlement process with the assuming bank if the numbers turned out to be a little off. The goal was to get home by Sunday night, but in some cases it might take a few weeks for the team to wrap up. And for larger institutions, there might be a small team (3 or 4 folks) of FDIC folks tucked around somewhere for months (frequently with a team of contractors and temps hired from the former bank that the assuming bank didn't want - that was in 2008-09 before they set up the field offices, and the FDIC folks tended to be retirees on temp contracts).

I have no idea how they handled this one - I suspect they did the DINB because they didn't have time to shop anything before the closing.

I do know the FDIC did see the upcoming crisis and started hiring liquidation (sorry, "resolution" staff last year.

98 posted on 03/11/2023 2:08:21 PM PST by PAR35
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