Tulsa, MI (PressExposure) September 29, 2009 -- The government announces the collapse of another bank, or several banks, nearly every week. âThis is the worst banking crisis we have seen in over twenty years,â said Bartmann. Over 75 banks have failed already this year, nearly three times the total of last year.
According to Bill Bartmann, more than 1,000 more banks will fail over the next eighteen months, costing the FDIC nearly $70 billion through the year 2013. Though bank closings are announced nearly every week, the process is lengthy. Bill Bartmann knew about the recent Colonial Bank failure nearly three months before it was announced. âWe were offered an opportunity to look at the assets and kick the tires on this used car. We passed on it because it didnât fit our appetite,â said Bartmann. During the S&L crisis in the late 1980s, Bill Bartmann began his debt collection business and bought assets from more than 800 failed banks.
The FDIC has a very busy weekend once a failing bank closes on a Friday afternoon. They work with the institution to ensure the doors open Monday for depositors to access their money. They must get familiar with the bankâs operations and work with employees to ensure their pay and health benefits. Accounts must be transferred. âThe customer in most cases sees it as a seamless transition, said Bill Bartmann. The next day the customer can go to the bank and his deposits are safe and exactly where they were the day before.â
Since the FDIC was formed 75 years ago, no depositor has lost money on insured deposits. The agency recently increased their insurance to cover amounts up to $250,000. âThatâs a remarkable history given the chaos our country has been through,â said Bartmann.
Bill Bartmann credits the FDIC Chairman Sheila Bair with the agencyâs performance during the current crisis. âIâve been married for 36 years. If I wasnât married to my present wife, I would chase this woman down,â said Bill Bartmann. âShe has more courage than any chair of the FDIC to date.â
Bill Bartmann expects to see many more banks fail as commercial real estate loans default and local shops we drive by every day go under. Bill Bartmann is the author of Bailout Riches: How Everyday Investors Can Make a Fortune Buying Bad Loans for Pennies on the Dollar. The book recently became an Amazon #1 world-wide best-seller. Learn more about Bill Bartmann and his book, Bailout Riches, at [http://www.roadtomajorwealth.com]