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IndyMac's Future and FDIC's Expansion of Bidders for Failed Banks


The FDIC announced yesterday that it's allowing more institutions to bid for the assets and deposits of failed banks. You no longer have to be bank to be a bidder:
The FDIC is establishing a modified bidder qualification process to expand the pool of qualified bidders for the deposits and assets of failing depository institutions. The process will allow interested parties that do not currently have a bank charter to participate in the bid process through which failing depository institutions are resolved.

Last week the Office of the Comptroller of the Currency (OCC) announced a procedure in which it'll grant preliminary approval to investors for a national bank charter.

Perhaps the troubles that the FDIC is having selling IndyMac is leading the regulators to make it easier to bid on failed banks. The FDIC had intended to have all of IndyMac sold off by now. As I reported in late July, the FDIC spokesman had said the FDIC intended to have IndyMac sold to one or more banks before the end of October. IndyMac failed on ">July 11th, and the FDIC was forced to take it over since it was unable to find a buyer. The FDIC changed the name to IndyMac Federal Bank, and it continues to manage it.

According to this LA Times article, the FDIC is now hoping to have IndyMac sold by December. Perhaps with the expanded pool of bidders, the FDIC will have a better chance.

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