On November 26, the FDIC announced the establishment of a modified bidder qualification process to expand the pool of qualified bidders interested in purchasing the deposits and assets of failing depository institutions. In recognition of the fact that potential investors not organized as FDIC insured institutions or bank holding companies might be interested in bidding to purchase a failing depository institution, the FDIC will consider abbreviated applications and may issue conditional approval for deposit insurance in order to qualify interested parties for the FDIC’s failing institution bidders list. The program complements the Office of the Comptroller of the Currency's recently announced program to pre-qualify applicants who wish to receive a national bank charter.  

Interested parties must have conditional approval for a bank charter from the responsible agency and meet certain bid criteria established by the FDIC, including (i) a business plan compliant with the Community Reinvestment Act, (ii) readily available capital, and (iii) an identified management team subject to financial and biographical review.