The FDIC markets troubled institutions to healthy insured depository institutions. Each institution must be resolved using the least costly resolution option for the FDIC. The FDIC's primary objective is to maintain financial system stability and public confidence. Returning assets to the private sector in an orderly manner at the best price is another key objective. The FDIC also tries to reduce the impact on the community.

Recapitalization is the preferred method to resolve open troubled financial institutions. FDIC markets institutions in case a failing institution is not able to resolve its issues on its own. If an insured depository institution is unable to resolve its issues, the FDIC will implement its resolution process by which qualified bidders may seek to acquire the assets and assume the liabilities of the failing institution.

While qualified bidders participate in the resolution process for a variety of strategic reasons, a successful resolution can provide a seamless transition for depositors and borrowers. Qualified financial institutions may consider pursuing a failing bank acquisition for the following reasons:

• Growth - An acquirer may grow its customer base with a stable funding source.
• Purchase Earning Assets - The transactions often include a portfolio of quality loans to customers in the local market. Additionally, the acquirer assists the FDIC to resolve assets in a more efficient manner.
• Expand in Existing Markets or Enter New Markets - Acquirers assume deposits, but have the flexibility to select the offices to remain open beyond a year. The acquisition may allow the acquirer to increase locations in their desired footprints.
• Economic Stability - Help minimize the adverse effects of an institution's failure on a community by maintaining access to full service banking.

For more information, contact:

InstitutionSales@fdic.gov

Toll-Free Number - (800) 568-9161
Main Number - (214) 754-0098

FDIC
Division of Resolutions and Receiverships
Franchise Marketing
1601 Bryan Street
Dallas, TX  75201

Useful Links

The links below can assist you in submitting a FOIA request, researching historical failed bank transactions or referencing the FDIC's Resolutions Handbook.

• Community Banking Initiatives
• Failed Bank List
• FOIA Service Center - Electronic Request
• Failed Financial Institution Bid Documents
• FDIC - Resolutions Handbook
• FFIEC - Community Reinvestment Act
• Managing the Crisis