Thursday, January 5, 2012
FDIC inspector general to study bank failures, examiners
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President Obama signed into law a bill directing the Inspector General of the Federal Deposit Insurance Corp. and the Government Accountability Office to study the effects of bank failures.
Rep. Lynn Westmoreland, R-Ga., introduced H.R. 2056, which passed the House in August. There were 97 bank failures in 2011, according to the FDIC, down from more than 150 the year before.
The FDIC inspector general will look into the effect of loss-sharing agreements between the FDIC and the receiver bank. It will consider if more loans could be modified without an LSA and if these agreements could be “phased out altogether,” according to the legislation.
