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Failed Bank Information

From: Citigroup Inc. - submitted 9/24/08
Indicative non-conforming bid summary for: Washington Mutual

Liabilities to be Assumed:

  • All insured deposit liabilities, FHLB advances, covered bonds and credit card liabilities.

Assets to be Purchased:

  • All loan assets net of reserves, at fair market value under loss-sharing arrangement (described below).

  • Investment securities portfolio, mortgage servicing rights and other assets, at fair market value.

  • Other non-loan assets to be determined within 150 days after closing (e.g., branch property and leases, commercial contracts, employee plans and liabilities).

  • No value to be ascribed to existing goodwill or other intangibles.

Deposit Premium:

To be reflected through Citigroup's portion of loss under loss-sharing arrangement.


FDIC to provide loss-sharing on all acquired loans. Current reserves to be carried over and utilized for benefit of FDIC against future losses.

  • First losses to be borne 80% by FDIC and 20% by Citigroup, with aggregate cap on Citigroup liability equal to [8.7%] premium on insured, non-broker retail deposits (estimated $10 billion premium on $115 billion of deposits).

  • FDIC to guarantee 100% of losses in excess of cap.

Last Updated 04/21/2010 cservicefdicdal@fdic.gov