The acquiring bank, which accepts the payment on behalf of the merchant, gets .45% while the payment processor is left with .1%.
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In an FDIC assisted deal, for example, the acquiring bank eventually buys the deposits and is protected against significant loss in assuming the loan portfolio.
If you happen to be a customer of a failed bank, the FDIC maintains a Failed Bank List with information on the acquiring bank, if applicable, and how your loans and accounts are affected.
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So when we market a bank, sometimes the acquirers will want us to pay us enough of a premium to cover the uninsured deposits as well because they don't like the damage to customer relationships by acquiring a bank when uninsured depositors, they've had to take some losses.
Private investment bank Julius Baer added 2.2% after confirming it is in talks with Bank of America about acquiring the Merrill Lynch international wealth-management business.
However, talks of acquiring banks in Europe suggests that the bank has enough money to consider such a large scale operation.
Management has diversified its source of funding away from institutional markets by acquiring banks like Maryland's Chevy Chase Bank.
Fortis, a Belgo-Dutch bank overstretched by its role in acquiring ABN AMRO, is now part-owned by the Benelux governments.
This small New England regional bank has been slowly growing by acquiring banks in the area and expanding to other affluent areas of NY state.
In late August, the entity acquiring Delphi's assets offered holders of Delphi bank debt a deal to buy certain equity interests and notes in the new company and the opportunity to make new loans to it.
Bank of America, which was in the process of acquiring Merrill at the time, nearly backed out of the merger several months later because of staggering losses at Merrill.
Gifts can more than double the number of people who respond to bank offers, which, in turn, reduces the cost of acquiring these customers, according to Robert Tetenbaum, executive vice president of First Manhattan Consulting Group, which advises financial-services companies.
Penalties for sanctioned companies could include the denial of bank loans and export financing, a ban on winning government contracts, and prohibitions from acquiring, holding or trading any U.S. property.
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