Assets from Failed Banks

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18 thoughts on “Assets from Failed Banks”

  1. Ok I will try to ask this in a simple way if the FDIC takes 80% loss and the bank takes 20% does that mean i can approach bank and possibly get asset up to 80% off?

  2. Very informative.. Once I complete the entire training, I will look for those lenders with Loss Share assets acquisitions to liquidate. This will be very interesting and rewarding. Thanks Brecht for this big nugget
    Maryse

  3. Do you have a feel for the better to buy from – failing or acquiring banks? (which do you think is the most motivated, in general, if you have seen any trend). Thanks for any insight. This is a very interesting area (failed banks) that I’d not been exposed to prior to this module. More good info. Thx.

    • Hey Mark,

      Quite often failing banks cannot sell their assets at market prices. This is because to do so would mean that they would have to recognize losses and could put them at risk of swifter failure. We cover this in the second module where I talk about capital adequacy ratios. Hope that helps!

  4. This really raised my interest…didn’t know how this worked, or that it even existed as an opportunity to take advantage of.

    • Hi Michael,

      We were linking to Ernst & Young’s PDF. Looks like they’ve removed it. It went pretty deep into international accounting standards for credit loss and impairment. Its pretty geeky stuff for folks who are so inclined but is only background info and not necessary for our purposes. We’ll remove that link and if you want to dig deep into that this link should do it https://en.wikipedia.org/wiki/IFRS_9 but again, its geeky background stuff and not stuff you need to know to find deals. Thanks for pointing it out

  5. Ohhhhh! This part I really like :) I’ll look for some after i’m done the training but i never knew this existed. I just thought the acquiring bank had to take the good with the bad and like it. Will definitely be repeating this one. :)
    Thanks

  6. Please correct me if I am wrong lol When it comes to failed banks it makes more sense to go after commercial and not even worry about residential

    • I definitely understand how you came to that conclusion and that does make sense however I can tell you that I have personally conducted a big piece of a large liquidation of residential assets that were acquired, by a major regional bank, from a failed lender… so they do sell.

  7. I will go through this video training once again.
    Looking for assets from failed banks is a very interesting area.