FDIC to Add Staff as Bank Failures Loom

The Wall Street Journal ^ | 2008-02-26 | Damian Paletta

[rabscuttle385]

WASHINGTON -- The Federal Deposit Insurance Corp. is taking steps to brace for an increase in failed financial institutions as the nation's housing and credit markets continue to worsen.

The FDIC is looking to bring back 25 retirees from its division of resolutions and receiverships. Many of these agency veterans likely worked for the FDIC during the late 1980s and early 1990s, when more than 1,000 financial institutions failed amid the savings-and-loan crisis.

FDIC spokesman Andrew Gray said the agency was looking to bulk up "for preparedness purposes." The division now has 223 employees, mostly based in Dallas.

[rabscuttle385]

The FDIC will give an update today on the number of "problem" institutions that regulators are watching most closely.

[bruinbirdman]

"The FDIC is looking to bring back 25 retirees from its division of resolutions and receiverships"

When Bill Siedman speaks, the world listens.

yitbos

[jiggyboy]

There have been four bank failures in the past year. The most recent one before that was in 2004. As the stock market folks say, “the trend is your friend” — the FDIC is taking the right step here.

http://www.fdic.gov/bank/individual/failed/banklist.html