Is the FDIC sellling loans to flippers?

The Federal Deposit Insurance Corp. said last week that it sold $1.45 billion in real-estate loans through partnership deals with two private bidders, unloading some of the assets of a failed Nevada bank.

 

One of the winning bidders was a generically named entity called Diversified Business Strategies. The press release provided no additional information, but BailoutSleuth found that Diversified Business Strategies was a limited liability company formed in May 2007 by a Salt Lake City lawyer and two real estate agents.

 

No sooner had the FDIC announced the deal than Sorenson Group Holdings LLC, controlled by one of Utah's most prominent families, said it had acquired Diversified Business Strategies' interest in $701 million of commercial real estate loans once held by failed banks.

 

BailoutSleuth has been trying to get more information from the FDIC about how Diversified Business Strategies won the bidding, what it presented as its bona fides and whether it disclosed it would be selling the loans. The FDIC has not responded to our queries, nor have the other participants in the deals.

 

We will provide more information on this deal as we uncover it.

published March 4, 2009, 0 Comments

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Chris Carey, Editor
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This page contains a single entry by Chris Carey published on March 4, 2009 3:40 AM.

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