FDIC's Bank failure division to grow 5 times its present size!

Last updated on Sep 19, 2008

Posted on Sep 19, 2008

I do not want to be sensationalist about this issue – but it IS a BIG deal!

I have been writing about the various financial institution and bank failures and how things are going down in the financial market.

Now, FDIC’s Dallas office is expanding 5 times!  From the currently one floor they are adding 5 more.  Dallas office has employees and division that handles bank failures.

The FDIC announced plans earlier this year to add 140 employees to its Division of Resolutions and Receiverships.  Now it says it may add more than 230, with local staffing going from 164 at the beginning of this year to as many as 397.  The agency is even bringing back 69 retirees to help shoulder the burden.

According to some experts on banking, the number of banks that are set to fail are close to 300:

Gerard Cassidy, a bank analyst at Canadian investment bank RBC Capital Markets, said last month that “upwards of 300 banks could fail” in the next three years.

I heard a friend mention that close to 190 banks are going to fail and folded after the elections!  In fact by now, already a little less than $1 trillion has been spent on the mess.. and the Government may be preparing a package of $2-3 trillion for post elections when close to 190 banks may be folded!

What can you do?

So, guys, if you have a small business, are a high networth individual or have money stashed in any money market accounts – take care of your money!  For individuals, I would say, use credit unions to park your money – by law they are conservative and the chances that they would have played hanky-panky is very less!

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