FDIC Announces Bond Sales

The Federal Deposit Insurance Corp. announced two bond sales as part of efforts to purge failed-bank assets and recoup resources for the agency.

The offerings are the result of two public-private limited-liability companies — formed by private investors in conjunction with the FDIC — which issued debt to the agency last year to buy failed-bank assets.

In the deals announced Tuesday, the FDIC said it had raised nearly $2 billion by reselling that debt.

In one sale, the FDIC raised $1.3 billion from notes backed by $4.5 billion of assets from the failed Corus Bank in Chicago.

The other raised $652 million from selling notes backed by $1.2 billion of assets belonging to the failed Franklin Bank in Houston.

In both transactions, the assets will remain in the limited-liability companies that the agency jointly owns.

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