FDIC

The FDIC is making big plans to celebrate “America Saves Week,” which is February 19 to 26.

If you’ve got a lot of money and some "know how," you should be able to purchase a failed bank's assets from the FDIC, or even a failing bank before it goes under. If you only have a little bit to invest, you generally should look elsewhere. Now, though, that may be changing. 

Commercial banks and savings institutions insured by the FDIC reported an aggregate profit of $28.8 billion in the second quarter of 2011, a $7.9 billion improvement from the $20.9 billion in net income the industry reported in the second quarter of 2010. This is the eighth consecutive quarter that earnings registered a year-over-year increase.

Sheila C. Bair today officially stepped down as FDIC chair. Bair has served as chair since June 26, 2006. Vice chair Martin J. Gruenberg will assume the role of acting chair effective as of the close of business today. Gruenberg has served as vice chair of the FDIC Board of Directors since August 22, 2005. He previously served as acting chair from November 15, 2005 to June 26, 2006. 

The Federal Deposit Insurance Corporation today announced that Sheila C. Bair's official departure will be effective July 8th, 2011. Consistent with previous public statements, Bair (pictured) had announced her intention to depart the agency following the expiration of her term as chair. The FDIC will hold a board meeting during the first week of July. This will be Bair's final board meeting.

That didn't take long. The first Friday of the New Year saw the first bank to fail – actually, two. 

Last Friday, six more banks failed, bringing the total of FDIC-insured institutions to fail this year to 157. The 157th failure was Community National Bank, of Lino Lakes, Minnesota. 

The Dodd-Frank Wall Street Reform and Consumer Protection Act created the Office of Complex Financial Institutions (“CFI”) as part of the FDIC. The CFI is responsible for the continuous review and oversight of bank holding companies with more than $100 billion in assets as well as non-bank financial companies designated as systemically important by the new Financial Stability Oversight Council.

The governing board of the Federal Deposit Insurance Corporation has approved a $4 billion corporate operating budget for 2011. It’s a slight drop from the 2010 budget approved last December. 

Earthstar Bank, of Southampton, Pennsylvania, was closed on Friday. It is the 151^st U.S. bank to fail this year.