A Problematic Boost To M&A

Adler, Joe
December 2009
Mergers & Acquisitions Report;12/28/2009, Vol. 22 Issue 52, p17
The article reflects on the possible consequences if the Federal Deposit Insurance Corp. (FDIC) will consider open-bank assistance. While some say that considering such strategy could slow down the pace of bank failures and even save the government money others think that providing open-bank aid is politically dangerous. It notes how FDIC's failed-bank resolutions have drawn more competitive bids for failed banks and eliminate the agency's short-term cash needs and help it unload its assets.


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