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#1584327 - 07/28/11 12:54 PM FDIC Takeover
Anonymous
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Has anyone been through an FDIC takeover? Tips on how to survive--as an employee.

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#1584349 - 07/28/11 01:25 PM Re: FDIC Takeover Anonymous
Anonymous
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Yes, I have at the branch level then. It was by the RTC at that time, 1991, I believe. We employees were paid pretty well to stay through the mess - some branches were sold to other banks and some were not. If your bank is sold, do all that you can to show your value - I know some had to interview to stay on. If you're customer facing, they need you more.

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#1584358 - 07/28/11 01:31 PM Re: FDIC Takeover Anonymous
Lissa P. Offline
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Joined: Oct 2003
Posts: 474
Texas, USA
I went through one in the late 80's. I was frontline staff and we were the least effected by it all. I am certain that it was much more difficult for management. We were sold within a short matter of time to Bank One and that's when the majority of changes started taking place.

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#1584401 - 07/28/11 02:14 PM Re: FDIC Takeover Lissa P.
RR Joker Offline
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Posts: 20,654
The Swamp
Yes, it's not fun. April 29th for me. How do you survive? Hope you are not part of upper management. If you are front line and are bought by another bank, you will likely go through an interview process and be okay if your record is a good one.
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#1584418 - 07/28/11 02:31 PM Re: FDIC Takeover RR Joker
RR Becca Offline
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RR Becca
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out of the frying pan...
Was with her ^^^. Frontline survived OK, along with most below management who were willing to reshuffle as needed. Those of us in support/operational roles weren't all so lucky.

Though I have to say, I like where I am now better than the purchasers of the old place. smile
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#1584431 - 07/28/11 02:43 PM Re: FDIC Takeover RR Becca
Anonymous
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How about your CRA Officers? I just figure larger banks are going to handle that on a corporate level. I have plenty other experience (mortgage, commercial, loan review, compliance)but I figure they won't do much reshuffling. I think I'll be one of the first out the door.

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#1584433 - 07/28/11 02:45 PM Re: FDIC Takeover Anonymous
Anonymous
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I am nearly sick with the stress knowing it's coming any day now.

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#1584448 - 07/28/11 03:04 PM Re: FDIC Takeover Anonymous
Dazed Auditor Offline
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Joined: Apr 2005
Posts: 637
Acceptance, USA America
It can be a stressful experience but life goes on. I worked for a bank that was closed about two years ago. I was let go by the acquiring bank. I survived and am OK. You will be too.
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#1584466 - 07/28/11 03:27 PM Re: FDIC Takeover Dazed Auditor
Rocky P Offline
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Joined: Jun 2003
Posts: 7,401
Florida
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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#1584488 - 07/28/11 03:34 PM Re: FDIC Takeover Anonymous
Pale Rider Offline
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under the Lone Star
Originally Posted By: Anonymous
How about your CRA Officers? I just figure larger banks are going to handle that on a corporate level. I have plenty other experience (mortgage, commercial, loan review, compliance)but I figure they won't do much reshuffling. I think I'll be one of the first out the door.



I was the compliance officer/regulatory liaison for a couple of Southwest Plan shops back in the 80's and early 90's. I was much younger than and had small children, so there was no way I was going to wait it out and see if I could survive the final solution.

Most of the acquiring banks are going to have fully functioning compliance and audit functions, so unless you branch network is being picked up in an area in which the acquiror has no existing facitilies, the back office functions will be phased out, especially after the computer conversions have taken place.
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#1585594 - 07/29/11 10:23 PM Re: FDIC Takeover Pale Rider
KTW327 Offline
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Joined: Mar 2011
Posts: 183
In the trees

There is no guarantee that the purchasing bank will keep you or lay you off. It really depends on their strategy. The bank that purchased my old institution let us all go, but they told us initially that they would interview all of us and try to retain us (never happened).

I would recommend refreshing your resume and getting it out there. Sometimes bad things happen (bank closure) so that better things can come along (finding a new job you love).

Good luck to you!

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#1585640 - 07/30/11 10:47 PM Re: FDIC Takeover KTW327
Anonymous
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Just remember guys and gals, a new broom sweeps clean no matter what your title is or position!!

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#1591234 - 08/12/11 02:56 PM Re: FDIC Takeover Anonymous
JUST CALL ME CRA Offline
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Joined: Aug 2002
Posts: 133
SOMEWHERE
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 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, 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 so 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 employeed 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 the new 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. But it does seem that life will go on. So keep your chin up and wait and things will get better.
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#1591246 - 08/12/11 03:01 PM Re: FDIC Takeover Anonymous
JUST CALL ME CRA Offline
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Joined: Aug 2002
Posts: 133
SOMEWHERE
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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Opinions do not reflect opinion of employer and cannot be relied upon as advise.

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#1592102 - 08/15/11 07:32 PM Re: FDIC Takeover JUST CALL ME CRA
Sing A Little Offline
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Sing A Little
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Posts: 3,889
CA
Went through this a few years ago, but our bank was dissolved. There was another bank who was permitted to come in and try to retain deposits for their bank when account closures were happening. A lot of front line employees were picked up by that bank. I was in CRA at the time, so the FDIC kept me on to review loan files and prep them for sale. I was in the right place at the right time, just a small group was kept to clean things up. I ended up staying with them almost a year before I found another job.

It is a very rough thing to deal with, but it's also important to prepare yourself for the different scenarios.
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He who sings scares away his woes. ~Cervantes

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#1592262 - 08/16/11 12:18 PM Re: FDIC Takeover Sing A Little
TINKerBell Offline
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Posts: 3,239
Tiger's Den!
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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The last thing that blew my mind was the wind.

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#1594360 - 08/19/11 06:46 PM Re: FDIC Takeover TINKerBell
JUST CALL ME CRA Offline
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Joined: Aug 2002
Posts: 133
SOMEWHERE
Thanks. So far it is looking good for me. But there will absolutely be hundreds of jobs lost.
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Opinions do not reflect opinion of employer and cannot be relied upon as advise.

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#1599445 - 09/01/11 09:32 PM Re: FDIC Takeover JUST CALL ME CRA
Anonymous
Unregistered

I have been through it and we were all kept on as temps. Our contract stated that if we accepted the temp position we had to stay on until the acquiring bank released us and then we would be eligible for up to 10 weeks severance pay. If we didn't sign, or left before we were released, no severance. However, some of us, like myself, were offered the opportunity to interview for jobs in the new bank and so were retained, but with no seniority, same as if we had walked in off the street.

One of the above posters sounds as if she may have been acquired by the bank I currently work for in Nevada. I am happy to hear that it was not an unpleasant experience for her. I know it can be very stressful.

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