If the bank knew they couldn't really lose don't you think they'd be more inclined to sell? Presenting 'Loss Sharing'. If you don't know what an FDIC Loss Sharing agreement is then watch the video at the bottom of this post (it will save me a LOT of … [Read more...]
What Happens to a Failed Bank’s Assets?
February 16, 2011 By 1 Comment
I found this loss sharing video from the FDIC that I think does a pretty decent job explaining where all the assets go when a bank is shut down. After looking at a number of the Sale and Assumption agreements for some recent recent bank failures it … [Read more...]
Predicting Bank Failures
January 4, 2011 By Leave a Comment
On December 7th I wrote a post about the Texas Ratio and other distressed bank barometers. While BankProspector doesn't currently report the Texas Ratio of banks it does display and make searchable the Tier 1 and the Total Risk Based ratios (also … [Read more...]