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The DBS Fund Opportunity

It is estimated that the FDIC’s Problem Bank List will decrease in 2013.

As of January, 2011, the FDIC has shut down 340 banks and there are no signs that is slowing down anytime soon. The FDIC is ramping up head count to deal with this mounting problem. As a result, the funds allocated to receivership operations will climb to $1 Billion dollars from only $150 Million in 2008.

In 1989 the Resolution Trust Corporation (RTC) was created and charged with liquidating assets of Savings & Loans declared insolvent by the Office of Thrift Supervision. Between 1989 and mid-1995, the RTC liquidated 747 thrifts with total assets of $394 billion. Many investors used that window of opportunity to purchase hundreds of millions of dollars of loans and property assets that were later sold at significantly higher valuations as markets stabilized. It is anticipated that FDIC assets that will far surpass those liquidated by the RTC. Projections are that the FDIC, Fannie Mae, Freddie Mac and Legacy Loan Programs will liquidate at least $1 Trillion of assets in the next 5 years.

The DBS Fund provides qualified investors an opportunity to deploy cash at low risk levels. The DBS Fund will acquire dozens, or even hundreds, of individual loans. Not concentrating the investment in one or two large assets allows broader diversification of risk.

Prodigious amounts of economic uncertainty have caused sophisticated investors to side step and wait for clearer signals of econimic direction. Investors are uncertain where to find low risk investments with significant returns. One constant fact throughout the last century is that in every economic cycle there are winners and losers. DBS is positioned to win in this cycle.

In mid 2007 the inflated asset bubble that enveloped the world markets began to burst. Easy credit, sub-prime mortgage backed securities and excessive amounts of cash fueled one of the largest asset bubbles in history. The resulting damage inflicted on the US and World economy has been unprecedented and has grave ramifications for private equity funds, hedge funds, retirement systems, university endowments and financial institutions.