Auctioning Assets Other Than Loans — Ferraris, Artwork and the Occasional Cow — Keeps FDIC in Pocket Money
 Dec 22, 2009 –
“The FDIC has reaped $6.2 million from the sale of so-called ‘other assets’ in 2009, six times the total last year, according to the agency. While that’s a sliver of the
$38.3 billion of failed bank assets that the FDIC held as of Sept. 30, any cash is useful after the surge in crippled lenders sent the FDIC’s deposit insurance fund into the red,” reports Jerry Sterngold at Bloomberg News.
“Financial assets such as real-estate loans are sold separately through auctions that can involve complex financing and profit-sharing arrangements. ‘Other assets’ sales are as straightforward as old-fashioned live auctions.”
“A Ferrari, 360 Spider F1 with 27,363 miles – a car that failed New Frontier Bank of Greeley, Colorado had repossessed from an auto dealer that had defaulted on a loan — sold earlier this year”
“New Frontier, which cost the insurance fund $670 million, also left the FDIC with a 1,000-horsepower drag-racing Chevrolet pickup truck, and almost 1,000 milking cows. Sales from assets of other failed banks have included…Thomas H. Benton lithographs.” Continue reading…
PHOTOGRAPH OF FERRARI FROM WORLEY AUCTIONEERS
Please register to comment on AWidow.com.
*This information is required, but only your Screen Name will appear with your comment.
|
