Economist: FDIC Gearing Up For Bank Closures

[Purveyor]

The Federal Deposit Insurance Corp. is gearing up to handle a large number of bank failures expected as a result of bad mortgages, both in residential and commercial real estate, an economist says.

“They know they’re going to take down a large number of banks and they can’t do it until they’re staffed up,” said Mark Dotzour, chief economist and director of research for the Real Estate Center at Texas A&M University, at a real estate conference in Tampa, Fla., Tuesday.

Dotzour expects federal regulators to establish an agency, similar to the Resolution Trust Corp. that disposed of assets belonging to insolvent S&Ls in the late 1980s and early 1990s.

“Once they start to sell , we’ll find out what the market really is,” Dotzour said.

Dotzour blamed federal intervention for the lack of commercial real estate investment activity in recent months, as well as the failure of businesses to make major decisions.

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Baltimore Business Journal: http://baltimore.bizjournals.com/baltimore/stories/2009/07/06/daily21.html

[CoffeeCat]

1. Go here, to find out if your bank is healthy...

http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx?t=cb

Just plug in your bank's information--and you'll be amazed at how much information
there is on your bank. Pages and pages of valuable info.

They give banks a star rating--and even predict how the bank will do in the future. They
really dig into the balance sheets and explain everything.

[CAcyclist]

2. They certainly seem pathetic when it comes to credit unions though

Neither of my credit unions are found - Golden One or US First.