Its Friday, who posts the bank closings?
Darin
Posts: 7,213 ✭✭✭✭✭
There's a small bank in my area that the FDIC is rumored to be shutting down. Just wondering if they're on today's list.
A relative is a banker, he says a lot of banks are for sale, but stronger banks don't buy them because too much risk taking on the bad loans. Better to let the FDIC shut them down.
A relative is a banker, he says a lot of banks are for sale, but stronger banks don't buy them because too much risk taking on the bad loans. Better to let the FDIC shut them down.
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Ever wonder why they do this on a Friday?
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
They train people like task teams to fly out on instant notice and take things over. It was really interesting.
<< <i>There was a great NPR piece way back about 1 year ago about how when the bank closes friday the FDIC will send a team out for the weekend to get things up and running for start of business day Monday - I'm sure it's the fact that they can get 2 days to familiarize themselves with the banks situation.
They train people like task teams to fly out on instant notice and take things over. It was really interesting. >>
It also serves as a "cooling off" period for those whose first reaction to the news would be to go get their money from the remaining banks (which are closed over the weekend). I imagine a massive bank run is the FDIC's biggest fear, especially since banks were allowed to loan out most of our deposits that we think are safely tucked away in the big vault.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong