The FDIC provides multiple transaction types to allow bidders to acquire a failing institution or its assets. Transaction types commonly include the purchase of a failing institution in its entirety, or the assumption of deposits, with or without the purchase of asset pools.
Whole Bank Purchase and Assumption Transaction
A Whole Bank Purchase and Assumption transaction includes the deposits and assets of the failing institution except items specifically excluded in the transaction. Bidders interested in purchasing deposits and all the loans of a failing institution may bid using this type of transaction or bid on all the optional loan pools using a Basic Purchase and Assumption transaction.
Basic Purchase and Assumption Transaction
A Basic Purchase and Assumption transaction includes the deposits of the failing institution and items specifically included in the transaction. This type of transaction is usually offered when there is insufficient time for due diligence.
A Basic Purchase and Assumption with Optional Loan Pools transaction includes the deposits of the failing institution with the option to bid on pools of loans. This type of transaction may be offered when there is sufficient time for due diligence. Bidders interested in purchasing these deposits and only certain assets may bid using this transaction type. Bidders wanting to purchase deposits and all the loans of a failing institution may bid using this transaction type or the Whole Bank Purchase and Assumption transaction.
Shared Loss Agreements
The FDIC may offer transactions with shared loss options when collateral values are uncertain or when losses at the failing institution may not be fully identified. Typically, shared loss is offered on single-family residential loans and commercial loans. More information can be found on the Shared Loss page.
Transaction Options
During a failing bank resolution, the FDIC does not typically sell branches or assets individually. A sale of the entire institution to one acquirer is preferred. Pools of loans, other real estate, bank premises, or other assets may be available for purchase after the institution is closed. Information about purchasing these assets is available on the Loan Sales page.