Tags: fdic | foreclosures | banks

FDIC Owns $1.8 Billion in Homes, Buildings

By Dan Weil   |   Wednesday, 18 Nov 2009 11:03 AM

The Federal Deposit Insurance Corp. (FDIC) has turned from an agency that provides insurance on bank deposits to one of the country’s biggest landlords.

As the FDIC has seized 150 failed banks in the past two years, it has taken possession of 5,000 houses, subdivisions, buildings, parcels and other foreclosed assets, The Wall Street Journal reports.

The total value of the real estate now owned by the FDIC: $1.8 billion.

It owns valuable assets, such as a $1.7 million mountain lodge in Steamboat Springs, Col., and not so valuable assets, such as a rundown home in Birmingham, Ala., valued at $18,700

"These are properties with a bad story," Jim Gallagher, a senior official in the FDIC's Division of Resolutions and Receiverships, told The Journal.

"What we're trying to sell is something that is rundown or not completed or has some property damage."

Taxpayers will be holding the real estate for a while. It takes the FDIC six to eight months on average to sell a property.

The FDIC’s property ownership binge still has legs. Just recently it seized three more banks, two in Florida and one in California. That brings the total number of bank failures to 123 so far this year.

FDIC Chairman Sheila Bair said in a recent speech that bank failures won’t peak until next year.

“We do obviously have a lot more banks that will close this year and next," she said.

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The Federal Deposit Insurance Corp. (FDIC) has turned from an agency that provides insurance on bank deposits to one of the country’s biggest landlords.As the FDIC has seized 150 failed banks in the past two years, it has taken possession of 5,000 houses, subdivisions,...
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2009-03-18
 

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