5.1 Receiverships are managed to maximize net return and terminated in an orderly and timely manner. (managed by whom??....the FDIC-R of course)
Means & Strategies: Under the FDI Act, the FDIC in its receivership capacity manages the assets of failed IDI receiverships to preserve or enhance their value and disposes of them as quickly as possible, consistent with the objective of maximizing the net return on those assets. By quickly returning the assets of a failed institution to the private sector, the FDIC maximizes net recoveries.
In fulfilling its responsibilities to creditors of failed institutions, the FDIC, as receiver, manages and sells the receivership assets using a variety of strategies and identifies and collects monies due to the receivership. Given adequate time, the FDIC prepares in advance an information package and an asset valuation review for each failing insured depository institution to help solicit bidders and sell as many of the institution’s assets as possible at resolution or shortly thereafter. The FDIC manages the remaining assets in a cost-effective manner to preserve value until they can be marketed.The failed institution’s assets are often grouped into pools to be most appealing to acquirers and are marketed through an Internet-based platform.
External Factors: A severe economic downturn could lead to more institution failures and could affect the pace at which the FDIC markets assets and terminates receiverships. Economic and other factors, such as extended litigation delay the termination of a receivership
Comments in blue: Component 2- The receivership ie the statutory mechanism used to receive/house assets of the failed institution which is then managed by the regulatory body, the FDIC-R. Both the Receivership and the FDIC-R solely with respect to the WAMU RECEIVERSHIP specifically.....are not released!!!!!
