Assisted Merger

  

Categories: Banking, Insurance, Econ

Companies go out of business. It's part of the capitalist life cycle. If a business can't compete for whatever reason, it slips into oblivion, making room for other firms to pop up. (Cue: "Circle of Life" from the Lion King.)
But sometimes these failures come with complications. This is especially true for banks. Because banks sit at the center of the flow of capital, and because people and other businesses rely on banks to keep their money safe and warm, a bank failure can cause a dramatic ripple effect.
So there's a sizable regulatory structure in place to avoid any negative repercussions from bank failures. One of the devices used by regulators to sidestep the fall out of a bank going out of business is an assisted merger.
Basically, in an assisted merger, regulators help a failing bank find another bank to merge with. In the U.S., these actions are spearheaded by the Federal Deposit Insurance Corporation, or FDIC, the same people who guarantee bank deposits. Because the FDIC is on the hook for any deposit claims if a bank fails, Congress gave the organization the ability to avoid failures through an assisted merger process. If a dangerous situation comes up at an FDIC member bank, the regulator can help facilitate a transaction to move assets to a more stable institution.

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happen here Corporate america is kind of same thing when

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two companies merge while they generally you know attracted to

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each other hopefully respect each other they share stock or

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combined the stocks of each side and you know combine

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efforts and then and then cuddle afterwards if they're successful

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at the merger than the combination of two roughly equals

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yields more than the one plus one combo that made

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them so two companies get together on generally equal ish

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footing In that case acquisitions are a combining more like

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that eating thing on much different footing The large company

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eats or buys the target either using its more highly

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valued stock currency or it's taft to do so Well

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