Tag Archives: bank failures

Purchasing Loans of Failed Financial Institutions from the FDIC

When financial institutions fail, the FDIC steps in and seizes the assets of these institutions. The largest categories of assets held by a failed financial institution are its performing and non-performing loans. These loans are in the process of being sold to the public in bulk through a sealed bid process. This post explains how the sale process works, and tells how you can find information about the loans that are for sale.… Continue Reading

What to Do When a Lender Defaults

Lenders often express concern about potential defaults under their loan agreements - but it's usually default by the borrower that they're concerned about, not default by the lenders. However, with an increase in the number of bank failures and FDIC receiverships over the past year, we've begun to see an increase in the number of lender defaults in syndicated loan deals. If you're a lender (or a borrower) in a syndicated credit facility, you might well find yourself facing this situation at some point. What can you do - and what can't you do - when a lender defaults?… Continue Reading