Bank Failures Expected to Grow

According to the FDIC, they are expecting in the upwards of 100 or more bank failures in the next 2 years. This is very high considering there have only been 4 failures in the last 12 months. 65 banks and thrifts were identified as “problem” institutions at the end of the Q3 last year.

The Wall Street Journal Article doesn’t identify the banks the FDIC has identified as “problem institutions” or any others that they think are falling into that same basket, but this should make you readdress your situation and make sure all your accounts are under FDIC insurance protection. That usually means having less than $100,000 on deposit per bank. There are other ways around this such as setting up the account as a POD account (Payable on Death), that would increase your insurance to $200,000. See this FDIC site for more details on FDIC insurance coverage for your situation.

Can you make money on a bank failure? Sure, if you have “skills in performing duties associated with a financial-institution closing, such as receivership management, resolutions and/or asset disposition; knowledge of the resolutions process as it relates to complex financial institutions.” Apparently the FDIC is willing to pay as much as $180,770 per year if you’ve got the experience. With such a shortage of resources they are trying to bring some folks out of retirement to help.

Anyone know of a “Teach Yourself Bank Failures in 21 days” book?

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