... Boris' ... This is Direct From the Site' ...
... I thought I would put this out for you and others to read, this is directly off of the FDIC site regarding the finalization of its responsibilities ... Now, as nranger asked, earlier, I of course can not be sure, however, I do believe we are close ... I emphasized the following sentence from the text ... GLTA'
"While a receivership's average lifespan is three to six years, some may require longer time frames to conclude"
Notes to Financial Statements:
"1. Basis of Accounting: The FDI Act authorizes the FDIC, as receiver for a failed insured depository institution (''receivership''), to administer and conclude the affairs of such institution. Financial statement presentations are based on the premise that the assets of the receivership will be liquidated and proceeds distributed to the institution's creditors over time as provided by applicable laws and regulations. While a receivership's average lifespan is three to six years, some may require longer time frames to conclude. At the onset of a receivership, the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The assets and liabilities of the failed institution are adjusted to remove all estimated losses, accruals, and deferrals. These adjustments include loss allowances; partial write downs; prepaid, deferred or accrued expenses having no recovery value; and accrued or deferred income. Restated balances are shown under the Inception Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, FDIC's liquidation valuation and measurement practices, as described more fully in the paragraphs that follow, are adopted for all assets and liabilities. In general, transactions are recorded when cash is received or disbursed. Accruals may be used when prospective cash flows are probable and reasonably estimated."
