Failed US Banks Evince Foreign Interest

Failed US Banks Evince Foreign Interest

http://online.wsj.com/article/SB125107229558052583.html?mod=googlenews_wsj

Several foreign banks have evinced keen interest in acquiring the assets of the failed US banks and the sale of the operations of the Texas based Guaranty Bank to BBVA SA is the first such successful transaction. Several other foreign banks having a US presence such as BNP Paribas SA, Toronto Dominion Bank, UnionBankCal Corp and Rabo Bank have expressed their willingness to gobble up the failed US banks. The continued increase in the number of bank failures and the consequent pressure on FDIC’s funds has made it look around for additional capital to smoothen the impact. In the past two years 106 banks have failed since the onset of the financial crisis. Foreign banks having a US presence have the advantage of having the resources and the staff to takeover and run the failed banks.