Banking institutions that achieve a certain size trigger the unenviable task of creating a living will, a plan to enable regulators to quickly resolve the institution in the unlikely event that it fails. The standards for such plans continue to evolve. Venable can advise institutions that find themselves crossing the threshold or who are facing supervisory criticism for past efforts.
For decades, Venable has worked extensively on the problems associated with failing and failed banks. Whether bidding on a failing institution or purchasing assets from the FDIC following a failure, our team is well versed in the complexities of acquiring troubled institutions, including dealing with the FDIC in its dual capacities as receiver and corporation. We help qualify clients with the FDIC as bidders for failing institutions, prepare bid packages, negotiate purchase and assumption and loss-sharing agreements, and monitor failed bank agreements and loss sharing. Our attorneys also assist with bidding on loans and other assets held by the FDIC, as well as compromising loans and other claims by borrowers.
Venable can also assist the bankruptcy estate of bank holding companies to retain tax refunds held by the estate against claims of the FDIC as receiver of a subsidiary bank. We also defend management of failed institutions against claims asserted by the FDIC as receiver.