Saturday, May 2, 2009

How FDIC dismantles a bank

Almost every Friday evening we hear the news: "So-and-so bank was shut down by Federal Deposit Insurance Corporation". Since the beginning of the year we have had 32 bank failures, according to FDIC. (In comparison, there were 25 bank failures in entire 2008, and 3 in 2007.)

Inquiring minds want to know... how do they do that?

Then I ran into this: "Anatomy of A Bank Takeover (NPR)"
It gives a good glimpse of how FDIC goes in and does their work. Quite fascinating. It is like an espionage operation of some sort. And from the description of it, it is also quite efficient and thoughtful (surprising, coming from a government agency).


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