Acquisitions of failed banks increasing

BVWireIssue #96-3
September 22, 2010

In their recent newsletter Adams Capital, Inc. reported an increase in bank acquisitions with buyers purchasing at a discount and enjoying the benefit of FDIC loss guarantees. According to the firm “the largest asset acquired is usually the loan portfolio. Loan portfolio valuation provides the buyer and the FDIC with clarity on the amount and timing of the loss-share.“

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