Figured that is what you were saying. Any idea how long they can hold one now?
I don't believe there has been any change in the holding period allowed by federal regulators. Reg. Y of the Bank Holding Company act indicates that the allowable period is 5 years, and extensions can be applied for to extend that up to 10 years.
Banks want to rid themselves of this stuff, known as Other Real Estate Owned (OREO), because it eats up capital. It is a non-earning asset on the balance sheet and these assets are usually classified as "adversely classified assets", which affects their bank rating and ultimately their FDIC insurance premiums.
