Acquirer A acquires assets, non-deposit liabilities, and issues a new promissory note to Acquirer B to cover the current amount of deposits.
Acquirer B receives the promissory note from A and acquires the depositor liabilities (and the customer accounts to service).
Any new deposits are just liabilities of B, and B will match them with new assets.
Somehow, eventually, the promissory note gets paid down as the old assets mature or are sold by A, and B uses those payments to fill up a new asset book against the deposits.
Seems like it could work on paper?
That being said, the FDIC’s sole criterion for selecting a resolution plan is the option that minimizes payout from the FDIC insurance fund. Assuming they can get it done with one buyer by tonight with $0 from the insurance fund, they won’t look at any cleverer options.
Interesting. One could imagine this working by:
Acquirer A acquires assets, non-deposit liabilities, and issues a new promissory note to Acquirer B to cover the current amount of deposits.
Acquirer B receives the promissory note from A and acquires the depositor liabilities (and the customer accounts to service).
Any new deposits are just liabilities of B, and B will match them with new assets.
Somehow, eventually, the promissory note gets paid down as the old assets mature or are sold by A, and B uses those payments to fill up a new asset book against the deposits.
Seems like it could work on paper?
That being said, the FDIC’s sole criterion for selecting a resolution plan is the option that minimizes payout from the FDIC insurance fund. Assuming they can get it done with one buyer by tonight with $0 from the insurance fund, they won’t look at any cleverer options.