The 2013 Interagency Minority Depository Institution and CDFI Bank Conference
Roundtables
Collaboration with the FDIC on Resolutions and Asset Sales
| Panel Co-Moderators | |
| D. Michael Collins | Director, Office of Minority and Women Inclusion, FDIC |
| Pamela J. Farwig | Deputy Director, Division of Resolutions and Receiverships, FDIC |
| Panelists | |
| Leslie Crawford | Deputy Director, Office of Minority and Women Inclusion, FDIC |
| Charles K. Liles | Senior Financial Analyst, Franchise and Asset Marketing, FDIC |
| James Sigler | Contract Oversight Specialist, Franchise and Asset Marketing, FDIC |
| Ronald C. Sommers | Manager, Franchise and Asset Marketing, FDIC |
Overview
The FDIC continues to proactively expand its outreach efforts to encourage participation of small, minority and women-owned (MWO) investors in FDIC asset sales programs. Participants in this Roundtable obtained information about the types of assets the FDIC has for sale, the various methods used to sell assets, how to become pre-qualified as a potential asset purchaser/investor, and the types of sales opportunities/programs available.
General Discussion
The FDIC awarded 1,326 contracts with a combined value of over $1 billion in 2012. Of these, 388 contracts worth $308 million – nearly 30 percent – were awarded to MWO businesses. The FDIC also has made efforts to attract smaller and MWO companies to take part in their structured loan transactions when banks fail. In addition to the Small Investor Program, the Investor Match Program provides a web-based platform for companies to share information with other companies that have pre-registered with the FDIC to receive information on structured loan transactions. Currently there are over 180 registered participants, and one-third of them are minority or women owned. Prospective participants can visit the FDIC’s website at www.fdic.gov to gain access to the automated online networking platform, which enables participants to identify potential partners and provides a forum to connect with them.
The FDIC has offered numerous seminars and information sessions to let the public know what it took to do business with the FDIC, with special emphasis on MWO companies and law firms. The FDIC’s Office of Minority and Women Inclusion is an advocate for MWO businesses, providing technical assistance through its website including contracting checklists, how to respond to a Request for Proposal, how to compete with other businesses for FDIC work, and many related matters.
The FDIC presented the process and qualifications for potential participants in the Cash Sales and Structured Transactions programs. The presenters urged interested organizations to become prequalified by completing forms on the website, and encouraged potential investors to do their due diligence before submitting a bid. Participants inquired as to what is left in the FDIC’s portfolio as the crisis winds down. The FDIC’s inventory includes: about $1 billion in securities; about 150 owned real estate parcels with $415 million book value; cash loan sales of approximately $50 million; structured transactions of about $150-$175 million; and multi-tranche securitizations of about $300 million.
Conclusion
The FDIC provides a variety of opportunities for MWO firms to do business with the FDIC, whether providing the agency with contracted business services or purchasing assets through several asset sales programs. The FDIC’s website provides extensive information on bidder qualifications, processes for contracting and asset sales, and contact information for additional technical assistance.