FDIC looking to boost headcount by 70%, prepares for bank failures

Discussion in 'Wall St. News' started by makloda, Mar 26, 2008.

  1. http://www.reuters.com/article/bondsNews/idUSN2541729820080326

    NEW YORK, March 26 (Reuters) - The Federal Deposit Insurance Corp plans to hire as many as 138 new workers to address the potential for rising bank failures, the Wall Street Journal said in its March 26 edition. An agency spokesman said the FDIC plans to boost the number of workers in its Division of Resolutions & Receiverships to as many as 380 from the current 223, the newspaper said.

    The division is authorized to have 242 workers, so hiring may involve 138 new positions, of which half will be temporary, it said. Last month, speaking at the Reuters Regulation Summit in Washington, D.C., FDIC Chairman Sheila Bair said she expected bank failures to rise, but mainly among smaller institutions.

    The FDIC is also hiring because of the expected retirement of some employees, the newspaper said. At year-end, the agency had put 76 FDIC-insured banks with $22.2 billion of assets on its "problem list," up from 65 institutions with $18.5 billion of assets at the end of the third quarter.

    Only five U.S. banks have failed since 2004, including two this year. Analysts have predicted the failure rate will grow as losses from soured mortgages and other loans mount, and as regulators crack down on lenders that take too much risk. There are 8,535 banking institutions insured by the FDIC. Of these, 7,266 are commercial banks, 1,258 are thrifts and 11 are U.S. branches of foreign banks.

    More than 2,000 banks nationwide failed in the decade ending in 1992, encompassing the heart of the savings-and-loan crisis.

    More: http://www.reuters.com/article/blog...Qbs&bbParentWidgetId=B7gSUbux1hpbz8uOa7TWsLnV
  2. That´s the reason why Goldman is short, IMHO, or ? :confused:
  3. "In job postings on its Web site, the FDIC said it is looking for people with "skill in performing duties associated with a financial-institution closing, such as receivership management, resolutions and/or asset disposition; knowledge of the resolutions process as it relates to complex financial institutions." Such positions would require "very frequent overnight travel," the posting said, and would pay up to $180,770."

    Maybe a couple of those fired from fixed income divisions on Wall Street are interested in this job opening? :p
  4. 180,770 $ ??????? Is that tax payer money ? :confused:
  5. Not even news, they've been talking about this for months
  6. For the first time (ever I think), more than half the U.S. employed population is employed by the Government. So, us "smaller half" are paying the salaries of the bigger half...I'm not so sure I like that situation.

  7. http://www.northjersey.com/business..._right_now.html

    this has actually been going on for a month now in most north jersey towns....even in the more affluent towns like Ramsey,Saddle River,Allendale etc........not isolated like they lead you to believe.

    perhaps these will be the first to flop like domino`s.......have to love it when we can blame everything on a computer glitch this day & age..........smells of insolvency to me.
    i really can`t help but feel i`m sitting on a ticking time bomb with $USD`s.
  8. so 1995 banks to go over the next few years
  9. busted link

  10. Just remember.. The gov't is here to help you.
    #10     Mar 27, 2008