Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

House subcommittee looks at bank failures
WASHINGTON (1/22/10)—A House Financial Services subcommittee Thursday took a look at the condition of financial institutions through a case study of a recent bank failure. The House subcommittee on financial institutions and consumer credit, which is chaired by Rep. Luis Gutierrez (D-Ill.), heard from representatives of the banking industry and the U.S. Treasury Department, as well as federal bank regulators. In written testimony, Director Mitchell Glassman of the Federal Deposit Insurance Corp’s (FDIC’s) division of resolutions and receiverships reiterated the agency’s 2009 bank-failure experience. Glassman noted that the FDIC resolved 140 insured institutions with over $171 billion in total assets. He added, “While the economy is showing signs of improvement, recovery in the banking industry tends to lag behind other sectors. We expect to see the level of failures continue to be high during 2010.” Glassman testified that the FDIC is prepared and ready to handle the situation. Due to staffing enhancements that began several years ago and other changes, such as last year’s expansion of the agency’s Receivership Assistance Contractors and geographic expansion through temporary satellite offices on both the west and east coasts, Glassman said the FDIC stands ready to manage bank closing and receivership activities throughout the country. Other witnesses included representatives of: Bethel New Life Inc., a faith-based community group with a focus on Chicago’s West Side; FBOP Corporation; U.S. Bank; Austin Bank; Treasury, and the Office of the Comptroller of the Currency. Today, the parent Financial Services Committee intends to take a look at compensation in the financial industry. Three scheduled witnesses are: Lucian Bebchuk, from Harvard Law School; Nell Minow, editor and founder of The Corporate Library, and Joseph Stiglitz, from the Columbia Business School.

RSS print
News Now LiveWire
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
19 hours ago
Today's the last day to complete @CUNA's Home Depot data breach survey #StoptheDataBreaches
20 hours ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
22 hours ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
22 hours ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
22 hours ago