The Federal Deposit Insurance Corp. plans to close its temporary suburban Chicago office next September, nine months earlier than expected.
The FDIC said in a press release on Wednesday it decided to close the office in Schaumburg, Ill., which was opened in early 2010, because of the current and projected workload in the area and "in recognition of the signs of the improving health of the banking industry in the Midwest."
Additional work would be reallocated to the FDIC's resolution office in Dallas.
The Midwest office was one of three temporary locations the FDIC opened to deal with the glut of bank failures. Earlier this year, it announced it would close the West Coast temporary office in Irvine, Calif., in January 2012. The temporary office in Jacksonville, Fla., however, will be open at least until late 2013, "because of the substantial work remaining in that office from the large number of bank failures that have occurred in the southeastern U.S."
The Midwest satellite office was authorized to hire 500 people. The FDIC said it currently has a staff of 287 people. The office has managed the resolution of 35 failed banks.
Chicago has been one of the failure hubs during the current downturn. Loan Workout Advisers LLC, a Chicago-based consulting firm, said 34 banks in Chicago were in danger of failing at June 30.
