On July 15, 2008, in the wake of the failure of Indymac Bank – one of the largest bank failures in history – and a mounting cloud of uncertainty enveloping the banking industry, the Federal Deposit Insurance Corporation (“FDIC”) issued its Final Covered Bond Policy Statement (“Final Policy Statement”). In a move many view as an effort by the FDIC to bolster the mortgage market and provide banks with a new liquidity tool (and funding alternative to the struggling securitization market), the Final Policy Statement may open the way to a . market in covered bonds. Though covered bonds have existed and flourished in European markets, a . market for these bonds has faced.
