4: Creditor Recovery
Recovery to creditors of receiverships is achieved. Other Information:
Program Description: The Receivership Management Program is designed to ensure that claims against the receiverships are satisfied
consistent with applicable laws and the resources of individual receivership estates. When an institution fails, the FDIC
is appointed receiver and assumes responsibility to recover, as quickly as it can, the maximum amount possible on the receivership's
claims. Having fulfilled its obligations as deposit insurer, the FDIC is often the largest creditor. The receiver may have
valid claims against former directors, officers, attorneys, accountants or other professionals who may have caused harm to
the institution. Funds collected through the pursuit of valid claims and the sale of assets are distributed to the creditors
according to priorities set by law. Once the FDIC sells the receivership’s assets and resolves its obligations, claims and
any legal impediments, the receivership is terminated and a final distribution is made to its creditors.
Objective(s):
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