Filed under: Bad news, Money and Finance Today, Personal finance

FDIC Chairman Sheila Bair has been sounding alarms bells for more than a year about the hazards for banks as foreclosures increase. Now, her worst dreams may soon be reality. Later today the FDIC will release its numbers of “problem” institutions - banks near failure. At the end of the third quarter that number was 65, which is higher than the 45 banks in trouble a year earlier. But, given that the FDIC is looking to bring back 25 retirees from its division of resolutions and receiverships, as the Wall Street Journal reports this morning, I suspect we’re going to see a spike in the number of “problem” institutions.

At the height of the savings and loans crisis in 1993, there were 572 “problem” institutions. Back then the FDIC had more than three times the number of employees it has today. So the FDIC needs to hire some new folks who can quickly get up to speed in the process of dealing with bank failures. More than 90 duty locations are listed for R&R [Resolutions and Receiverships] Specialists, but the announcement specifically indicates that the FDIC plans to rehire 25 retirees. If you’ve got the experience the pay is great $67,836 to $180,770.

Employees hired according to the job listing will “engage primarily in resolution and receivership activities of financial institutions. They will be responsible for gathering, compiling, researching and manipulating financial data to prepare a variety of financial documents, management reports and presentations.” They must be able to “analyze financial statements, operating and project reports, cost data, managerial practices, capital and reserves, credit condition, loan file documentation, cash flows and other elements to determine the soundness of the assets held by an insured institution and determine the risks and value of the assets and liabilities.” FDIC obviously wants to hire quickly. The job listing opened on 2/20/2008 and closes on 2/28/2008.

Continue reading FDIC gears up for bank failures

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This entry was posted on Tuesday, February 26th, 2008 at 11:36 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.