FDIC Plans Layoffs

WASHINGTON - (11/01/04) -- The FDIC, the chief bankingregulator, said last week it plans to trim its staff by up to 12%,or 600 positions, by the end of next year. The staffing cuts willcome through buyouts, retirements and layoffs, the agency said. Ina memo sent to employees the banking regulator said some divisionsno longer have a workload that justifies staff sizes, like its 515employees working on receiverships, when about a dozen banks faileach year. The National Treasury Employees Union, which representsFDIC employees, said it was disappointed the agency did not consultwith the union before issuing the memo to employees.