BBVA, the Spanish bank, on Wednesday emerged as the frontrunner in the auction for Guaranty Financial, a struggling Texas bank with $14bn in assets that US regulators have been trying to sell for the past six weeks. BBVA was thought to have been offered loss-sharing protection from the Federal Deposit Insurance Corporation as part of the deal. In some past deals, the FDIC has agreed to absorb 80% of losses up to a certain level and 95% of losses beyond that. Six or seven bidders were believed to have submitted offers for Guaranty assets.

This entry was posted by Gwen Robinson on Thursday, August 20th, 2009 at 4:58 and is filed under M&A. Tagged with bbva, fdic, Guaranty. Edit this entry.