The FDIC accepts sealed bids, as well as various bid types without any preference. Bids are evaluated and compared with each other and the FDIC’s estimated cost of liquidation to determine the winning bid. As required by the FDIC Improvement Act of 1991, the winning bid must be the least costly to the Deposit Insurance Fund (DIF) and be less costly than the FDIC’s cost to liquidate assets and pay insured depositors.
Multiple Bids
Bidders can submit multiple bids using any of the offered transaction types, including multiple bids for the same assets using different terms.
Winning Bid
The FDIC does not have a preference for bid types. By law, the winning bid must be the least costly to the DIF and be less costly than the FDIC’s cost to liquidate assets and pay insured depositors. If the most competitive bid costs more than liquidation or if the FDIC receives no bids, the FDIC liquidates the assets and pays insured deposits.
Bid Summary Publication
Shortly after the chartering authority closes the institution, the FDIC publishes the Purchase and Assumption Agreement and the public bid summary on the FDIC's Failed Bank List website.