Securities Sales

The FDIC sells a range of securities including stocks, bonds, asset-backed securities, mortgage-backed securities, syndicated credits, and partnership interests retained from failed banks. The FDIC may also contribute securities to FDIC sponsored structured transactions (i.e. re-securitizations).

Sealed-bid auctions are a primary method used by the FDIC to sell retained securities. Typically, similar securities are grouped. At its discretion, the FDIC may use other disposition strategies, like negotiated sales or participation in issuer repurchases.

 

Securities Sales Event(s)

Description	Date(s)	Location
There are no securities sales event announcements at this time.

Mechanics of Auction Sales

• Bidders are qualified for specific securities sales after analysis of submitted documents.
• Bid Sheets describing the securities and the terms of the auction are distributed to qualified Bidders.
• Sealed bids are reviewed and a winner is selected.
• The FDIC and its securities Custodian coordinate the settlement with the winning Bidder.

Qualification Process

The FDIC will only consider prospective bidders who receive a satisfactory credit investigation and whose financial and non-financial information is satisfactory.

Frequently Asked Questions

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Questions and Answers
What types of securities does the FDIC sell?   United States Treasury securities Federal agency securities Residential or commercial mortgage-backed securities Other asset-backed securities Public and private equity Corporate, municipal, and sovereign debt Structured finance instruments Limited partnership interests, typically associated with Community Reinvestment Act investments Derivative instruments
Who can participate in a FDIC securities auction? Investors meeting federal securities act qualification criteria for private placement sales, such as banks and registered broker-dealers, are eligible to purchase securities. Bidders must be qualified before receiving information about securities sales.
What is the auction sale process?   Potential bidders are identified and qualified (e.g. Qualification Request, Purchaser Eligibility Certification, Office of Foreign Assets Control certification). Bid Sheets are distributed to qualified bidders generally one week prior to the auction date describing the terms of the auction. Bids are reviewed and awarded to the winning bidder; winning bid is typically confirmed via phone and email. The FDIC’s securities custodian handles all trade ticket and settlement procedures with the buyer and interacts with FDIC accounting; sales typically settle in two to three business days, (i.e. “T plus 3”).
Are securities auctions absolute? No, reserve prices are established for each security and FDIC has discretion to accept a bid below reserve or withdraw a security if the reserve price is not met.
Is a deposit required to bid? No.
How are securities sales advertised? Qualified bidders are notified via e-mail of an upcoming auction.
Where can I find a listing of securities for sale? Securities are not publically listed for sale. Qualified bidders can review securities offered for auction when the bid sheets are distributed (generally one week prior to the auction date).
Where can I find a listing of historical sales? Historical sales are not currently posted.