Structured Loan Sales
“Structured Loan Sales” are asset sales using private/public partnership structures. In these structures, a private firm acquires the right to certain future cash flows and assumes asset management and servicing obligations. This allows the FDIC to draw on the asset management expertise of the private sector while retaining a participation interest in all future cash flows generated by the workout of the assets over time. Certain future expenses and all income of the private/public partnership entity will be shared on the percentage ownership to the purchaser and the FDIC.

Five such sales were made between May ‘08 and February ‘09 for a total of $3.26 billion. It is anticipated that the FDIC will use this format for divesting a substantial portion of the many offerings to come.

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