FDIC sells delinquent loans

The Federal Deposit Insurance Corp. sold a partial ownership stake in a non-performing loan portfolio with 37% of its collateral located in Florida on Monday. The sale helped resolve the December 2009 failure of Cleveland-based AmTrust Bank.

To complete the sale, the FDIC created a limited liability company as a holding entity for the non-performing portfolio. The FDIC then sold a 40% equity interest in the new company to a three-party group, consisting of Residential Credit Solutions Inc., based in Fort Worth, CarVal Investors, based in Minneapolis, and RBS Financial Products Inc. based in the U.K.

The portfolio contains approximately $898 million in loan assets, meaning roughly $332 million worth of the collateral is located in Florida.