Office of Thrift Supervision

Pre-clearance Program

The OTS has a “pre-clearance” program to facilitate the infusion of new equity capital into troubled banks and savings associations by investors who do not currently own one.  Under this program, the OTS can grant preliminary approval to bid on troubled insured institutions through a bid process operated by the Federal Deposit Insurance Corporation (FDIC).  Preliminary approval also enables the OTS to share the prospective investor’s contact information with troubled savings associations.  The program expands the pool of potential qualified acquirers to recapitalize troubled institutions.

As part of the program, the OTS reviews the investor’s character, integrity, financial and managerial resources, and general business plan.  After an investor receives preliminary approval, the OTS contacts savings associations needing capital to initiate a due diligence process.  If the prospective acquirer is interested in participating in the FDIC bid process, the OTS notifies the FDIC to include the investor on the bidders list.  Final approval is subject to the filing and consideration of a formal application regarding a specific institution.   

Parties interested in participating in the pre-clearance process should contact the Applications Manager for the OTS region where they intend to operate the savings association.  If the location is undetermined, they should contact the Director of Applications in the Washington, D.C. office.  For a list of OTS contacts for application-related matters, see Where to File.