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Acquiring Failed Banks Can Mean Buying Compliance Risks, Say Consultants
By Brian Monroe
printCompliance officers face challenges anytime two financial institutions merge. But when one bank buys up the assets and the problems of a failed competitor, the hurdles can exponentially increase. How to handle the assets and liabilities of failed banks has increasingly been an issue in recent years as more than 300 institutions have collapsed since 2008, according to the Federal Deposit Insurance Corp. The past three years account for more than 90 percent of the bank failures since 2000, according to agency numbers. Acquiring a troubled bank can also prove expensive, even if buying the depositary accounts and other assets...
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