Though, the Federal Deposit Insurance Corporation is running the auction, according to a regulatory filing earlier this month, the bank is likely to be put into receivership if it is unable to raise up to $1 billion in fresh capital to cover escalating losses as part of the sale process.
The bank is expecting a loss of $443 million in second-quarter, up as compared to the loss of $66 million in the previous year.
Moreover, the deadline is expected to be extended as regulators are looking for more buyers.
