A bridge bank is a temporary financial institution created to preserve the deposits and good assets of one or more failing institutions.1 A bridge bank is a kind of purchase and acquisition (P&A) agreement in which the government (or restructuring agency) itself acts temporarily as a buyer until the institution is ready to sell. The bridge bank may be allowed to take over all banking operations, or only a few, for example. B the granting of new loans and the acquisition of existing loans. Rotten assets are liquidated or transferred to an asset management company. If the bridge bank is expected to be sold quickly to a solvent bank, the government may choose not to inject capital into the bank, which could make the bank-bridge deal a cheap deal for the government. As a general rule, in the case of a P&A contract, only insured deposits are transferred to an acquisition bank. However, in a bridge banking situation, only insured deposits or all deposits can be transferred, depending on the potential systemic impact. After identifying potential buyers, they should be contacted and invited to a marketing presentation. Registration forms and confidentiality agreements should be sent by mail or fax to the potential acquirer. None of these forms should identify the failing bank being considered. Potential purchasers must return a copy of each form. This will help the marketer prepare the number of corresponding information packages. Potential purchasers should keep the original forms and present them as tickets for the marketing presentation.14 9.
The potential acquirer, its representatives and potential investors acknowledge that the bank or FDIC is the exclusive and lawful owner of proprietary information and that unauthorized disclosure by the bank or FDIC will cause significant and irreparable harm for which there is no appropriate remedy. Without prejudice to any rights and remedies that may be made available to the Bank or the FDIC, including damages, the Bank and the FDIC, as well as each of them, are entitled to legal protection of convenience in summary proceedings where the prospective acquirer or any of its representatives or potential investors infringes or threatens to breach any of the provisions of this Agreement. The marketer should estimate the time it takes to complete the asset assessment and offer package so that a marketing presentation can be scheduled.. . . .