Friday, December 19, 2008

FDIC Says No New Banks in the USA

There are FDIC rules in place that will effectively ban any new banks. I can understand banning banks that are not adequately capitalized, but why would the FDIC want to ban new qualified banks?
The Federal Deposit Insurance Corp. may be implementing what is effectively a ban on new banks in metro Atlanta and other distressed areas nationwide, as the financial industry’s and broader economy’s deterioration accelerates.

The FDIC, the nation’s bank deposit guarantor, has increased scrutiny of new banks applying for deposit insurance in select areas of the Southeast and other regions, including Western states, industry insiders said.

The new reviews, insiders said, make approval difficult in practice, if not impossible.

“It is a de facto ban,” said Stephen Johnson, CEO of Alpharetta-based consultant T. Stephen Johnson & Associates Inc. “I’ve never seen a time this difficult to get a charter.”

Click HERE for the rest of the story.

Source: Atlanta Business Chronicle

(Updated August 14, 2009)

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