The two most common ways for the FDIC to resolve a closed institution and fulfill its role as a receiver are: Purchase and assumption agreement (P&A), in which deposits (liabilities) are assumed by an open bank, which also purchases some or all of the failed bank's loans (assets). The bank's assets that convey to the FDIC as receiver are sold and auctioned through various methods, including online, and using contractors. Deposit payoff: As soon as the appropriate chartering authority closes the bank or thrift, the FDIC is appointed receiver. The FDIC as insurer pays all of the failed institution's depositors with insured funds the full amount of their insured deposits. Depositors with uninsured funds and other general creditors (such as suppliers and service providers) of the failed institution do not receive either immediate or full reimbursement; instead, the FDIC as receiver issues them receivership certificates. A receivership certificate entitles its holder to a portion of the receiver's collections on the failed institution's assets.
the two most common ways for the fdic to resolve a closed institution and fulfill its role as a receiver are purchase and assumption agreement (p&a) in which deposits (liabilities) are assumed by an open bank which also purchases some or all of the failed bank's loans (assets) the bank's assets that convey to the fdic as receiver are sold and auctioned through various methods including online and using contractors deposit payoff as soon as the appropriate chartering authority closes the bank or thrift the fdic is appointed receiver the fdic as insurer pays all of the failed institution's depositors with insured funds the full amount of their insured deposits depositors with uninsured funds and other general creditors (such as suppliers and service providers) of the failed institution do not receive either immediate or full reimbursement; instead the fdic as receiver issues them receivership certificates a receivership certificate entitles its holder to a portion of the receiver's collections on the failed institution's assets