Rare Bank Foreclosure Draws Notice

"It takes special circumstances for one bank to foreclose on another.

A rarity in the industry, but such an event took place this year, leading to last month's sale of Generations Bank to National Bancorp Holdings Inc.

'From my perspective, the scenario where this is likely to happen is when a bank is healthy or moderately healthy, and the bank holding company is distressed. In the current environment, it is often just the opposite,' said Edwin del Hierro, a partner at Kirkland & Ellis LLP."

This article appeared in its entirety in the May 9, 2011 edition of American Banker.