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How Regulators Decide To Shut Down Banks

Wednesday, December 29, 2010 - 7:36 AM
Wall Street Journal article reviews the decisions that the FDIC and other regulators have made in shutting down banks. There are some interesting insights about why apparently healthy banks have been closed:
Some of the banks classified by regulators as well-capitalized at the time of their failure were dragged down by a parent company that collapsed. [...] At other banks, losses ballooned shortly after regulators examined their financial statements and loan files, causing sudden death.



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Ken TuminKen Tumin5,467 posts since
Nov 29, 2009
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