Signup for our free newsletter:

The FDIC Ramps Up

Written By Brian Hicks

Posted August 28, 2008





Hmmm. It looks like the FDIC is ramping up for something big.

I wonder what it could be.

Here’s the skinny.

From Bloomberg by David M. Levitt entitled: FDIC Adds Office Space in Dallas, Ready for More Bank Failures

“The Federal Deposit Insurance Corp. is preparing to sign a five-year lease to add five floors of space at its Dallas regional office as the agency prepares to increase scrutiny of failing and troubled U.S. banks.

The federal agency, which insures deposits and disposes of failed banks and their assets, will add 125,000 square feet to the 185,000 square feet it rented last year at 1601 Bryan St., a 49- story tower in downtown Dallas. That agency will add about 300 staff at the building, including some of the 69 retirees it is bringing back to help handle the increased workload, said spokesman Andrew Gray.

At least a dozen U.S. lenders and credit unions have been closed by state and federal regulators since last year, and the FDIC said on Aug. 26 it had 117 banks on its “problem list.” On Aug. 22, Columbian Bank and Trust Co. of Topeka, Kansas became the ninth U.S. bank to collapse this year.

“Already you’ve seen nine failures of institutions this year,” said Gray. “While historically this isn’t a large number, it does represent an increase over the past two years. We anticipate additional failures and thus we would anticipate additional workload.”

Dallas is the headquarters of the agency’s Division of Resolution and Receivership, the unit that handles failed banks. The staff additions would bring the total number employees at that location to about 850, he said”


Maybe they could call in Clarence. He sure helped out George in a pinch.