Minority Depository Institutions Program
Preservation and Promotion of Minority Depository Institutions
The Federal Deposit Insurance Corporation
Report to Congress for 2014
Asset Sales and Outreach
The FDIC also works to encourage participation of small, minority and women-owned investors in FDIC failed bank asset sales programs. Minority and women investors participated in eight of the ten FDIC Division of Resolutions and Receiverships (DRR) cash sale transactions during 2014. These transactions had an aggregate book value of $772 million, and were closed between January 2014 and December 2014. All of the 153 minority- and women-owned firms that were then on DRR’s Minority and Women Owned (MWO) Investor list were notified of the sales; 35 submitted documents necessary to review loan files associated with loans being sold; and, 14 submitted bids.
The FDIC initiated marketing of one structured transaction sale consisting of assets from a financial institution that failed in October 2014. The assets included in the sale consisted of performing and non-performing hospitality, commercial real estate and commercial/acquisition, development, and construction loans, with approximately $261 million in unpaid principal balance. This 2014 transaction was announced to prequalified investors, of which 158 were MWO Investors and Minority or Woman Owned Business (MWOB) firms, on December 1, 2014. No structured transactions were closed in 2014.
The FDIC continued to utilize the Investor Match Program (IMP). The IMP is a Web-based platform sponsored by the FDIC for companies, including MDIs, to share information with other companies that have pre-registered with the FDIC to receive information on structured loan transactions. These programs were designed to increase the opportunities for smaller investors, which are often minority- and women-owned companies, to take part in the process.
The FDIC participated in a combined total of 21 business expos, one-on-one matchmaking sessions, and panel presentations. At these events, FDIC staff provided information and responded to inquiries regarding FDIC business opportunities for minorities and women. In addition to targeting MWOBs, these efforts also targeted veteran-owned and small disadvantaged businesses. Vendors were provided with the FDIC’s general contracting procedures, prime contractors’ contact information, and forecasts of possible upcoming solicitations. Also, vendors were encouraged to register through the FDIC’s Contractor Resource List (a principal database for vendors interested in doing business with the FDIC). In 2014, MWOBs in the Contractor Resource List increased by 322 firms.
FDIC’s Office of Minority and Women Inclusion (OMWI) hosted an interagency Technical Assistance Day for MWOB and Minority and Woman Owned Law First (MWOLF) business owners on December 2, 2014. This event provided a venue for various business owners to become better acquainted with the FDIC’s contracting process, receive technical assistance on effective Proposal Writing, and learn about services offered by the Minority Business Development Agency and the Small Business Administration’s Procurement Technical Assistance Center. OMWI and DRR also conducted a series of outreach events to raise awareness and provide information on how to purchase owned real estate (ORE) through DRR’s Owned Assets Marketplace and Auctions Program, as well as other loans and ORE assets from the FDIC, through cash loan sales and structured transactions. The events also facilitated interaction between smaller investors and asset managers and real estate professionals, including MWO Investors. These included informational sessions in Chicago and New York City in November. Information regarding the Owned Assets Marketplace and Auctions Program can be found on the FDIC’s website at www.fdic.gov/mwop.