Small Banks Bear Brunt of FDIC Crackdown
New York (TheStreet.com ) -- Regulators have ramped up efforts to seize troubled banks, yet unlike the two large failures recently, most banks that fail in the final months of this year will be small banks, observers say.
"The government's gotten to the point now where they're comfortable with allowing failure to be an option," says Frederick Cannon, Keefe Bruyette & Wood's co-director of research and chief equity strategist.
Regulators are saying, " 'It's time to address this problem and get this behind us,' " according to Cannon, who adds that the Federal Deposit Insurance Corp. has been adding staff to address the surging problem banks.
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