FDIC To Use Online Auctions For Liquidating Assets

Posted by Orb Staff on February 11, 2009 No Comments
Categories : Commercial Mortgage

Online auction companies will play a role in the Federal Deposit Insurance Corp.'s (FDIC) attempt to move the inventory of assets it acquired from failed banks. The Euromoney Institutional Investor Online Network (EMII) reports that the agency will request bids from auction providers as it tries to liquidate the $14.7 billion of assets that the FDIC held on its balance sheet at the end of January.

‘Now that the inventory has picked up and more assets are coming in, it just gives us more opportunities to sell assets and choose which of the companies we want to use,’ FDIC spokesperson David Barr told EMII.

Among the assets in liquidation are $2.8 billion of commercial real estate loans, foreclosed properties and securities. The FDIC already uses an online bidding process to liquidate banks, EMII adds.

SOURCE: EMII

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