Electronic books

I heard from a seemingly knowledgeable source that, at a certain point in the process of shutting down a bank, the bank’s financial information is made available electronically so other banks with an interest in it can easily access those records when deciding a course of action regarding said bank. It was explained that when that happened, it usually took 60 to 70 days before the bank was closed. Keep in mind that it could well open the next day with business as usual, just under a different name. I would be interested to know if anyone can verify or debunk that.

3 comments on “Electronic books

  1. A virtual file room is common both in troubled bank due diligence and in non troubled situations. the virtual room is a very efficient method of sharing large quantities of information in a cost effective way. The potential buyer can review the files and records in their own shop and avoid travel and the probability of being seen and their interest becoming public. Importantly multiple buyers can look at the records at the same time, that does not happen in a paper due diligence.

    I do not think you should conclude the bank will be sold just because they are looking for buyers. Given the large and diverse foot print of the bank and its very troubled condition it would appeal to a limited number of buyers in my opinion.

    Interested parties will have to make a choice between looking at the information for a chance to buy the bank and signing an agreement prohibiting solicitation of bank staff and not looking so they can peruse the staff. Why buy the bank if you can hire the staff, they are the ones with the customer relationships. That bleeding has been going on for some time.

    More than you asked but wanted to bring up some other dimensions.

  2. Someone asked on the “Posts” page, which is shut down:
    “Does anyone know what the Bank is doing for a CFO since Stickle and Fanning have left? Was there an 8-K filed?”
    I responded that the last 8-k I can find was for the de-listing notice. FYI

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