#1584466 - 07/28/11 03:27 PM
Re: FDIC Takeover
Dazed Auditor
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Power Poster
Joined: Jun 2003
Posts: 7,658
Florida
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I've seen it both sides.
Usually upper management disappears - the rest of the bank will get stay contracts by the acquiring bank for a certain period of time to ensure an orderly takeover.
Front line/customer contact will usually be retained.
Operations and single purpose departments such as audit, CRA, compliance, mailroom, call center, usually hang around until conversion.
Due to technology, more people are working from remote locations. If you are good, or if there is a specialized need, relo offers or accommodations within a local branch may be made.
If the acquiring bank is close by, many times they will hold all unfilled positions open until after consummation to fill with newly acquired bank personnel. Since the failed banks are usually smaller, people have more diverse responsibilities and can be placed in different positions.
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#1591246 - 08/12/11 03:01 PM
Re: FDIC Takeover
Anonymous
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100 Club
Joined: Aug 2002
Posts: 133
SOMEWHERE
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Well, it DID happen to us. The takeover bank is local and they have branches in lots of the same areas that we are in. So where we have branches across the street, there will be job losses. And there will be many back office job losses without a doubt. But for anyone out there who may be going through this or fearing that they may go through it, I will add that it just happened that the bank that took us over had positions to fill in my area. So, it looks like I may have a job. And I can also say that the bank that took us over is going far above and beyond to make it as good for us as possible. They are paying even exempt employees time and a half for overtime. They are giving all of us two weeks paid vacation for the remainder of the year. They are paying 75% of the cost of our interim insurance. And they are going to give us two weeks notice before we are terminated. They are giving us first chance at any available positions. I have really been impressed with their professionalism and concern. And the FDIC has been very understanding, friendly, and nice to work with. However, I would caution that some of the things the FDIC told us at the initial meeting, turned out to be different when all was said and done. One of the worst things is that our 401(k)may be tied up 12 to 18 months. So if you lose your job and need it, it may just be too bad. They first told us there could be hardship withdrawals and now they say no.
I feel for anyone that has to go through it. It was horrible. Our insitution was 200 year old. But it does seem that life will go on. So if you face this, keep your chin up and wait and things will get better.
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#1592262 - 08/16/11 12:18 PM
Re: FDIC Takeover
Sing A Little
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Power Poster
Joined: Nov 2006
Posts: 3,255
Tiger's Den!
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Have been through it twice in the last 2 1/2 years. Each time it was different. First time local bank bought the deposits, but not the assets, therefore operational staff was kept on by FDIC for about a year while they sorted and sold the servicing of the loans. Retail staff became temp employees and had to go through interview process to be hired by acquiring bank.
2nd time was SO much different. I was the Compliance/CRA Officer at the failed bank. The acquiring bank bought both the deposits and assets of our bank. Only employees who were done that fateful day were the CEO and CCO. The acquiring bank kept everyone else, including Compliance, BSA, COO, CFO, etc, even though they had people in those positions. Even after conversion, very few were let go. I was retained, given a raise, and am working for a GREAT bank! Hang in there! This could work to your benefit!
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