The Federal Deposit Insurance Corp. may soon have another option for resolving failed banks whose assets include farm loans. Traditional banks are not welcoming the expected change.
The Farm Credit Administration is set to vote Thursday on a proposal to let its 96 system lenders bid on pools of failed-bank assets, as long as the pool is overwhelmingly based in agriculture. Such pools are often left behind when the FDIC can't find a buyer for the whole bank. Nonetheless, banks appear to be irritated at the notion of having to compete with Farm Credit lenders over the dregs.
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