Broadway Bank, the lender once owned by the family of losing U.S. Senate candidate Alexi Giannoulias, attracted only one bidder when it failed in April, newly released records from the Federal Deposit Insurance Corp. show.
The FDIC looks for healthy banks to take over the deposits and assets of banks that it seizes. MB Financial was the only bidder for Chicago-based Broadway, which had $1.5 billion in assets. Such deals typically include loss-sharing arrangements between the FDIC and the acquiring bank. Healthy banks have liked doing FDIC deals because their downside is generally limited.
The number of bidders for failed banks generally varies widely. A few receive no bids, but most receive at least one. Elmwood Park-based Midwest Bank, which had $3.17 billion in assets, attracted seven.
Leave it to the utterly incompetent executive management at mb to be the lone bidders while all the smarter banks held their nose and steered clear!
And as we can all see, it’s really helped mb’s performance; rising loan losses, poor earnings, dropping stock price (congrats on the new 52-week low a few days ago). By the way-doesn’t mb still owe us taxpayers TARP principal money in full?
Keep up the not so good work!
The smarter banks were too busy tripping over themselves on the other 6 banks sold that day I guess.
No shame in being the only bidder. It as a loss share and they are just collecting out the loan book for the FDIC’s benefit.