FDIC Postpones Pilot Sale Of Failed Bank Assets
Unable to get US banks to sell their toxic loans, the Federal Deposit Insurance Corp (FDIC) has postponed its pilot sale of toxic bank loans seized from failed lenders using guaranteed debt financing.
According to Chairman of FDIC, Sheila Bair, the agency aimed to launch the test sale in June and that it would be in the range of about $1 billion of distressed bank loans. The loan purchase program is part of the larger Public- Private Investment Program, which is intended to get rid of toxic assets from banks’ balance sheets. The other part of it, involving banks' legacy securities, is still under development, with plans to grant preliminary qualifications to fund managers.
The toxic asset plan was originally conceived as the main plank in the government's strategy to rescue the financial system in the wake of the sub-prime and global credit crisis. However, as most of the banks had succeeded in getting private capital without cleansing the toxic assets in their balance sheets, expectations about the plan was scaled back. The program also met with some resistance from potential investors, who feared regulators might restrict compensation structures or impose audits on their investment firms.
“Banks have been able to raise capital without having to sell bad assets through the FDIC's so-called Legacy Loan Program. As a consequence, banks and their supervisors will take additional time to assess the magnitude and timing of troubled assets sales as part of our larger efforts to strengthen the banking sector,” she further added.
Related Insight
Suppliers Directory
Wealth & Assets Management Asset Management Hedge Funds Private Equity Mutual Funds
Intermediaries Prime Brokerages Custody & Clearing ECN & Exchanges
Technology Banking Technology Security Tech Outsourcing & BPO
Policies & Regulatory Compliance Risk Management
Intelligence
Allianz SE (Allianz) is one of the leading global financial services providers, offering a range of banking, asset management and insurance services. The company was formerly known as Allianz AG. Allianz is the parent company for the Allianz Group of companies. The company is one of leading insurance providers in the property and causality, and life insurance in the global market. Allianz is one of the major players in the German insurance market. The company, combined with its subsidiaries, serves over 75 million customers in more than 70 countries across Europe, Asia-Pacific, America and Africa. The company's banking operations are conducted through Dresdner Bank AG and its subsidiaries. Global Markets Direct’s Allianz SE - Financial and Strategic Analysis Review is an in-depth business, strategic and financial analysis of Allianz SE. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed strategic analysis of the company. This highlights its strengths and weaknesses and the opportunities and threats it faces going forward. Reports Buy online from $125
Comments may be moderated for spam, obscenities or defamation.