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Alerts
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OCC Introduces New Charter Method to Expand Pool of Troubled Financial Institution Buyers
November 25, 2008
As the number of troubled and failed depository institutions continues to rise, so does the government’s need to find buyers for as many of these banks and thrifts as possible, in order to mitigate the loss to the FDIC insurance fund and taxpayers. However, only existing depository institutions and their holding companies have been eligible to participate in the FDIC-run auctions, and the number of existing institutions or holding companies healthy enough to absorb a troubled or failed institution without themselves becoming troubled is relatively small. Accordingly, in an effort to increase the universe of potential bidders, the Office of the Comptroller of the Currency (“OCC”) has created a new process by which a party may obtain a national bank charter (and, thereby, qualify to participate in the FDIC auctions) without actually having to acquire or charter a live bank.
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