In the past few years, regulators have found it necessary to close hundreds of insolvent banking institutions. The FDIC, acting as receiver for failed banks, is usually able to sell most of the assets of failed banks.   Typically, the purchaser of a failed bank will acquire most or all of the assets of a failed bank in an FDIC assisted transaction.  There are occasions, however, [...]

July 30, 2010 – The FDIC today raised $400 million by selling  bonds backed by performing residential mortgages.  The mortgages are part of $39 billion in assets acquired by the FDIC from failed banks (see FDIC’s Mountain Of Failed Bank Assets Grow).  The securities are guaranteed by the FDIC and were sold at a coupon rate of 2.184% with an expected maturity date [...]