As the FDIC continues to come into control of an increasinglylargevolume of loans through bank takeovers it must draw on theresourcesof the private sector to maximize value on those loans,says ThomasGalli, shareholder at Greenberg Traurig LLP, who headeda panel atWashington, DC's recently-held RealShare conference,consisting of Rich Brown, the FDIC's chief economist, and TimKruse, senior capitalmarkets specialist at the FDIC. "As asignificant bid/ask spreadcontinues to exist on pricing for loanportfolios in the privatesector, the FDIC appears to be the onlypractical opportunity in thecurrent market for the private sectorto acquire loan portfolios," hetells GlobeSt.com.

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The volume of loan portfolios the FDIC will bring to market in2010through its structured transaction program will besignificantlygreater than what it brought to market in 2009, Gallisays. That means opportunities for investors in this space will beextraordinary over the next two years.

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For example, large brand private equity and institutionalinvestorsare looking harder at opportunities available in theFDIC's Structured Transactions program, Galli says. "Those biddinghave found appropriate partners with infrastructure to performasset management on portfolios of modest to average loan sizeand/or geographically disbursed assets securing loans," hesays.

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Many deals for FDIC's structured transactions done thus farhavehad unique elements--largely due to varying asset classessecuringloans and characteristics of loans in aportfolio; permanent loansversus construction or development loans and the ratio ofperforming to non-performing loans, according to presentations madeby Brown and Kruse at RealShare. It's been a learning curve for theFDIC as well, Galli adds.

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"The FDIC has been remarkably adaptable in its asset depositionprograms over short time periods and through massive volumes ofasset sales," Galli says. "Senior leadership in the FDIC's Divisionof Resolutions and Receiverships were largely with the RTC duringthe early 1990s and have an incredible wealth of knowledge fromprograms and policies adopted by the RTC to address the lastbanking crisis," he continues. "They use that knowledge along withcurrent market sophisticated modeling and deal structures to createtransaction solutions in an effort to minimize adverse impacts onthe banking industry, our economy and ultimately the taxpayer."

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