The FDIC has finally decided to ditch the crappy home loans it acquired from failed banks during the financial crisis.
According to Asset Backed Alert, Stifel Nicolaus, RBS and HSBC are beginning to pitch loan portfolios to banks and investment firms on behalf of the FDIC. What needs to be noted, however, is that the investors originally thought the FDIC would wind down its positions slowly.
Instead, it’s going to liquidate like there’s no tomorrow.
This is due to the fact that the FDIC expects the number of institutions under its control will expand this year due to increased financial pressure from the crisis. It could be credit card write downs, it could be commercial real-estate. Nobody knows.
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