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 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.If anyone is bidding for the failed-bank mortgage servicing business and can share details -- on or off the record -- let us know.
FDIC Bulking Up for Bank Failures
In some commentary published in mid-January, I'd noted that sources were suggesting that the Federal Deposit Insurance Corp. was beefing up staff in anticipation of a spate of possible bank failures. Which brings us to the Wall Street Journal's coverage Tuesday of, ahem, the FDIC beefing up staff in anticipation of a spate of possible bank failures. Same story, different month: