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Email not displaying correctly? View it in your browser. FDIC Increases Budget on Expectations of Mounting Bank Failures Although signs of economic recovery have begun to take shape, don't expect the number of bank collapses to ease - that's the opinion of the federal agency that insures the nation's financial institutions. The FDIC is boosting its 2010 budget by a hefty 55 percent and adding staff in order to cope with another round of excessive bank failures next year. There have been 133 bank seizures so far this year, compared to 25 in 2008, only three in 2007, and none in 2006 and 2005. FDIC Chairman Sheila Bair says the cost of failures between 2009 and 2013 could top $100 billion. First American Puts 'Shadow Inventory' at 1.7 Million There were 1.7 million REOs and homes facing imminent foreclosure that had not yet hit the market at the end of the third quarter, according to data released Thursday by First American CoreLogic. The company says that at the current sales pace, it would take 3.3 months to get rid of this looming "shadow inventory." Combined with the 3.8 million new and existing homes visibly on the market, it represents a backlog of 11.1 months. Radar Logic Sees Stability for Housing Markets in 2010 Many forecasts for the housing sector paint a picture of continuing price declines, rising foreclosure numbers, and a looming 'shadow inventory' that could stop recovery dead in its tracks, but Radar Logic says predictions of a second doomsday collapse are "exaggerated." The company believes that low home prices and government incentives will keep housing demand strong well into next year. Regarding that ominous supply of distressed properties lurking in the shadows, Radar Logic says it will enter the market at a controlled rate that can be absorbed by existing demand without pummeling prices. Bank of America Picks Moynihan to Succeed Lewis Bank of America's three-month long search for a new CEO has come to an end, and the chosen one is one of their own. The company announced late Wednesday that Brian T. Moynihan will replace Kenneth D. Lewis as chief executive and president, effective January 1. Moynihan has held senior leadership positions at Bank of America across virtually all business lines. He currently serves as president of the consumer and small business banking unit. You are receving this email because you opted in at our website dsnews.com or attended a Five Star Conference. Unsubscribe roballey.434-974-5586@blogger.com from this list. Corporate Office: DS News 1909 Woodall Rodgers Suite 300 Dallas, TX 75201 Add us to your address book Washington Bureau: 1101 Pennsylvania Avenue NW Suite 600 Washington, D.C. 20004 Copyright (C) 2009 DS News All rights reserved. Forward this email to a friend Update your profile QUICK LINKS DSNews.com DS News' Red Book DS News' Black Book 2009 Five Star Conference DARE