Banks aren't set up to handle NPLs. I'm a strong believer that a business must allocate its most capable workers to its core business. You need professional asset managers to come in and manage NPLs, allowing bankers to focus on their normal tasks. Asset sales and third-party servicing contracts are the most productive action plans. Bankers are like marriage counselors.
NPL managers are like divorce attorneys.
These are quite different functions. There are a couple advantages. Having us come in soothes investors and reassures the public that things are being cleaned up at the bank. It allows the bank to keep its most valuable people in banking. We may also be more objective in dealing with a bank's NPLs.