Circular
Interagency Supervisory Guidance on Bargain Purchases and FDIC- and
NCUA-Assisted Acquisitions
June 23, 2010
Circular No. 12223

The Board of Governors of the Federal Reserve System, together with the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency and the Office of Thrift Supervision, has issued guidance addressing supervisory considerations related to bargain purchase gains and the impact such gains have on the application (licensing) approval process.

Recent market conditions have contributed to an increase in bargain purchases, which has necessitated the issuance of this guidance.

The guidance also highlights the accounting and reporting requirements unique to business combinations resulting in bargain purchase gains and FDIC- and NCUA-assisted acquisitions of failed institutions.

See SR 10-12 for full details.

SR 10-12 offsite