Classified Assets and Restructuring: Once a Low-Quality Asset, now a Harder Path Out

Under Regulation W, a bank generally may not purchase a “low-quality asset” from an affiliate. But what exactly qualifies as a low-quality asset, and can an asset escape that status through restructuring? A low-quality asset includes, among other things, assets classified by examiners as “‘”substandard,” “doubtful,” or “loss.” The question arises: if a classified asset … Continue reading “Classified Assets and Restructuring: Once a Low-Quality Asset, now a Harder Path Out”