Bankruptcy

Subprime Mortgage Brings Down Lenders

By J. Michael McBride

The FDIC is looking to hire 25 retired employees and staffing up for a possible wave of bank failures.

“The FDIC identified 76 banks as potential problems during the last quarter of 2007, 11 more than in the third quarter.

Problem institutions are put under closer scrutiny but the agency never discloses their identity, hoping to avoid mass withdrawals by depositors. A problem bank is generally one whose capital reserves may not be adequate to meet the bank's obligations while dealing with loan defaults and other liabilities.”

You can read the full article:
http://www.consumeraffairs.com/news04/2008/02/fdic_banks.html

Michelle

Full post as published by Texas Lawyer Blog on February 28, 2008 (boomark / email).