FDIC! NEWS RELEASE
flOIIAl Oll'OSll IN$UIANQ COlll'OIAllON
-
FOR IMMEDIATE REIEASE PR-44-89 (3-1-89)
SEIDMAN TELLS BANKERS THRIFT ASSETS
WILL BE FOR SALE WHEN HANDED TO FDIC
Real estate assets turned over to the Federal Deposit Insurance
Corporation as it resolves insolvencies in the savings and loan industry will
be put on the market and sold for current value, not "dumped" on the market
or held in anticipation of future appreciation, FDIC Chairman L. William
Seidman today said in a telephone address to bankers meeting in califomia.
"Some groups have asked us about our plans for asset liquidation,
particularly real estate. They have asked us to hold real estate off the
market and not to sell until the price is right--whenever that is. The
FDIC's present position is as it has been in the past--that all real estate
will be for sale," Mr. Seidman ·said.
In his remarks to the Independent Bankers Association of America, Mr.
Seidman noted the FDIC does not dump real estate from insolvent commercial
banks and has no plans to begin dumping real estate obtained from insolvent
thrifts. "In the cases where we must take control of thrift assets, we will
try to sell these properties at current fair market value. No sales will be
made on a 'whatever we can get' basis."
Mr. Seidman said the FDIC will attempt to ease the process for
investors interested in acquiring real estate, and is willing to begin
discussing terms. Holding properties off the market under asset management
agreements, he observed, would only create uncertainty and could actually be
detrimental to the real estate market and local economy.
-more-
FEDERAL DEPOSIT INSURANCE CORPORATION, 550 Seventeenth St., N.W., Washington, D.C. 20429 • 202-898-6996
flOIIAl Oll'OSll IN$UIANQ COlll'OIAllON
-
FOR IMMEDIATE REIEASE PR-44-89 (3-1-89)
SEIDMAN TELLS BANKERS THRIFT ASSETS
WILL BE FOR SALE WHEN HANDED TO FDIC
Real estate assets turned over to the Federal Deposit Insurance
Corporation as it resolves insolvencies in the savings and loan industry will
be put on the market and sold for current value, not "dumped" on the market
or held in anticipation of future appreciation, FDIC Chairman L. William
Seidman today said in a telephone address to bankers meeting in califomia.
"Some groups have asked us about our plans for asset liquidation,
particularly real estate. They have asked us to hold real estate off the
market and not to sell until the price is right--whenever that is. The
FDIC's present position is as it has been in the past--that all real estate
will be for sale," Mr. Seidman ·said.
In his remarks to the Independent Bankers Association of America, Mr.
Seidman noted the FDIC does not dump real estate from insolvent commercial
banks and has no plans to begin dumping real estate obtained from insolvent
thrifts. "In the cases where we must take control of thrift assets, we will
try to sell these properties at current fair market value. No sales will be
made on a 'whatever we can get' basis."
Mr. Seidman said the FDIC will attempt to ease the process for
investors interested in acquiring real estate, and is willing to begin
discussing terms. Holding properties off the market under asset management
agreements, he observed, would only create uncertainty and could actually be
detrimental to the real estate market and local economy.
-more-
FEDERAL DEPOSIT INSURANCE CORPORATION, 550 Seventeenth St., N.W., Washington, D.C. 20429 • 202-898-6996
In expressing overall support for President Bush's proposal for dealing
with the savings an:i loan insolvencies, Mr. Seidman said it is important that
insurance coverage be available for institutions, both banks and thrifts,
that are interested in offering nontraditional products and services through
separately-capitalized subsidiaries. However, he stressed that strong
firewalls must be required so insured depository institutions are not
endangered by nontraditional activities.
"Many have said let's limit the kirrls of activities that the states can
permit through the dual banking system," Mr. Seidman observed. "If these
riskier, nontraditional activities were permitted, but conducted by a bank or
thrift in a separate subsidiary or affiliate, the insured bank or thrift
would remain safe if the affiliate failed and reap the benefits if it
prospered," he said.
###
with the savings an:i loan insolvencies, Mr. Seidman said it is important that
insurance coverage be available for institutions, both banks and thrifts,
that are interested in offering nontraditional products and services through
separately-capitalized subsidiaries. However, he stressed that strong
firewalls must be required so insured depository institutions are not
endangered by nontraditional activities.
"Many have said let's limit the kirrls of activities that the states can
permit through the dual banking system," Mr. Seidman observed. "If these
riskier, nontraditional activities were permitted, but conducted by a bank or
thrift in a separate subsidiary or affiliate, the insured bank or thrift
would remain safe if the affiliate failed and reap the benefits if it
prospered," he said.
###