Banking: FDIC sells off oustanding loans - but pays someone else to do it
The USA's FDIC tries to sell all assets of banks that it closes. But there are often assets that buyers don't want - and banks that no one will take over even for a premium of zero. FDIC puts those unwanted assets out to tender. But despite the size of the market (almost 130 banks closed so far this year alone) it contracts out the disposals.
The sales represent an interesting mix of performing and non-performing loans, often for amounts of between one and five million in a range of business areas.
One such sale is made up of parcels of residential development land, assisted living schemes, commercial property, residential property, "multifamily development land" and a convenience store.
Others, ironically given the role that bundled loans played in what became the global financial crisis, are for bundles of loans including residential, consumer and agricultural loans. There are also bundles of credit card loans.
Interestingly, FDIC does not manage these sales itself: it subcontracts them out to a number of brokers. The brokers are, often, not local to the assets.
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