In the last few years, there were few troubled bank acquisitions. The economy rescued even those banks that were taking, in retrospect, exorbitant levels of risk. Those banks that did have considerable problems still managed to sell at 2 times book value prices. Buyers needed to pay up to be successful. This attitude was quite sensible in light of the supply of banks and the level of bank pricing that existed from 2003 through the first part of 2007. When bankers returned from the July 4th holiday in 2007, however, the world had changed. Bank asset quality has deteriorated on a quarterly basis throughout 2007 and to date in 2008. These developments have left sellers of problem banks with fewer choices, and the limited alternatives are showing up in lower pricing. Buyers, however, are not leaping at deals that would have seemed like tremendous bargains just a few months ago. The buyers fear acquiring a sick bank with asset quality issues that can infect the buyer. So should buyers wait for troubled banks to address their problems before contemplating an acquisition? In other words, should buyers even consider a troubled bank's acquisition? An acquisition of a problem bank that can be cleaned up can represent a tremendous return to investors.