djc
02-26-2008, 11:41 PM
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.
• Out of Retirement: The FDIC is recruiting 25 of its retirees experienced in handling insolvent financial institutions.
• The Reasoning: The agency is preparing for an increase in failed financial institutions as the housing and credit markets worsen.
• What's Next: The FDIC will give an update today on the number of "problem" institutions that regulators are watching most closely.
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.
The agency, which insures accounts at more than 8,000 financial institutions, is also seeking to hire an outside firm that would help manage mortgages and other assets at insolvent banks, according to a newspaper advertisement.
http://online.wsj.com/article/SB120398607404892133.html?mod=hps_us_whats_news
---
• Out of Retirement: The FDIC is recruiting 25 of its retirees experienced in handling insolvent financial institutions.
• The Reasoning: The agency is preparing for an increase in failed financial institutions as the housing and credit markets worsen.
• What's Next: The FDIC will give an update today on the number of "problem" institutions that regulators are watching most closely.
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.
The agency, which insures accounts at more than 8,000 financial institutions, is also seeking to hire an outside firm that would help manage mortgages and other assets at insolvent banks, according to a newspaper advertisement.
http://online.wsj.com/article/SB120398607404892133.html?mod=hps_us_whats_news
---