Two of the America's top banking regulators - the OCC (Office of the Comptroller of the Currency) and FDIC (Federal Deposit Insurance Corporation) have widened the pool of buyers for failed banks by opening up bidding to both investor groups and individuals.
The bidding process was previously opened only to chartered banks and savings institutions but now virtually anyone can put up money to buy a bank. Open Sesame!
The recipe appears to have worked, with IndyMac being sold to a private group of investors (which included Michael Dell) for $13.9bn. (The Federal government took control of IndyMac in July 2008, a historical move documented in this CNN report entitle "The Fall of IndyMac"). The article also covers the rise of IndyMac and its asset class of "Alt A" loans (which has more relaxed documentation requirements than "A-paper" - considered to be "prime" lending).
No comments:
Post a Comment