FDIC securitizes mortgages from failed banks

SAN FRANCISCO (MarketWatch) -- The Federal Deposit Insurance Corp. said Friday it sold securities backed by $471.3 million of performing single-family mortgages originated by 16 failed banks. The FDIC pilot program marks the first time the agency has securitized assets during the current financial crisis. The lead underwriter was RBS Securities, with co-underwriters Bank of America/Merrill Lynch, Deutsche Bank and Williams Capital.

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