The Federal Deposit Insurance Corp. has opened a temporary office in Southern California to help manage the cleanup of failed Western banks.
The Irvine, Calif., office will be a satellite of the division of resolutions and receiverships, which operates mostly out of Dallas, the FDIC said Tuesday.
The agency said the office will be staffed primarily with nonpermanent personnel and contractors. The number of employees will be based on failures that occur west of the Rocky Mountains. The office is equipped to handle 600 employees.
The FDIC leased the space for three years but has the option to extend the lease for another two years.
An FDIC spokesman said the office will focus on institutions that have already failed, as well as future closings. This year six of the industry's 19 failures have occurred in the West.
