An international consortium of investors has spent about 37 cents on the dollar to purchase a stake in a huge pool of non-performing loans seized from AmTrust Bank nearly 8 months ago when that institution shut down[1]. According to the FDIC, the overwhelming majority – nearly 96% — of the loans in the package are delinquent, and the consortium of buyers plans to “manage, service and ultimately dispose of the assets” through workouts for distressed loans and HAMP modifications when possible.
The consortium has purchased 40% of the portfolio, and the FDIC retains a 60% stake. The FDIC will also share in the returns on the assets. The FDIC reports that this particular transaction, in which the winning party beat out three other bidders, completes the sale of the majority of the holdings from the AmTrust Bank collapse.
Do you think that this is a good way to handle failed banks’ REO properties?
Thank you for reading! Your comments and questions are welcomed below.
[1] http://www.dsnews.com/articles/fdic-sells-amtrust-portfolio-of-nonperformers-for-37-cents-on-dollar-2010-07-19
Would love to know the behind closed door dealing for this deal and several others. Never happen because too many would be sent to jail!
Just from the overview it seems like a pretty fair deal. But the devil is in the details.
The interesting line that caught me was that it was the final sale of assets for that bank. It would be good to know if this was the bottom of the pile (worst of the worst) or was this just the last in a random collection of assets. Most likely the really good pools were picked over long ago. And knowing that would say a lot about the quality of the assets and the sale price.
I agree with Chris. It has become quite clear to me that the attitudes in this Country have taken a horrible turn. It now looks to me like committing Fraud, Lying to the people, paying off Politicians, and simply being selfish and self serving, are considered to be acceptable attributes. I don’t know about you, but this is NOT the AMERICA I am proud of.
we are america. if we want the democratic practices we so cherish & desire to be implemented, we can just say so & do so.
i believe in participatory democracy. every citizen should serve in all elective, appointive & political civil service positions in all local/ regional/state/federal positions.
keep the salaries in place. pull names from a hat. just move everycitizen thru the process, every two years change it. no recurrent or concurrent terms.
every citizen gets to do it.
we are a democratic peoples, despite the constitutionally required status of a republic conferred upon the states. the people can change that thru their elected representatives or voting initiative by a 2/3 or simple majority vote, according to the state.
let’s evolve.