bad bank
Financial waste facility
A bad bank is a financial institution created to absorb toxic assets—failing loans, worthless securities, underwater mortgages—from a troubled bank's balance sheet.
The term emerged during banking crises when governments or private entities established these entities to isolate bad debt, allowing the original bank to resume normal operations: The government set up a bad bank to hold the failed mortgages.
Strategic oversight of holdings
- financial stabilitySound economic standing
- credit crunchSevere reduction in lending
- insolvencyInability to pay debts
- liquidationSelling assets for cash
write-offs · bailout · deleveraging · financial crisis · recapitalization · systemic risk
Structured physical exercise
- turnaroundShift in opposite direction
- rehabilitationRecovery from injury/addiction
- reorganizationChanging how something's arranged
- receivershipCourt-ordered asset management
administration · rescue · recovery · consolidation · overhaul · wind-down · loan restructuring · carve-out
asset management
Strategic oversight of holdings
- financial stabilitySound economic standing
- credit crunchSevere reduction in lending
- insolvencyInability to pay debts
liquidation · write-offs · bailout · deleveraging · financial crisis · recapitalization · systemic risk
workout
Structured physical exercise
- turnaroundShift in opposite direction
- rehabilitationRecovery from injury/addiction
- reorganizationChanging how something's arranged
receivership · administration · rescue · recovery · consolidation · overhaul · wind-down · loan restructuring · carve-out · spin-off