Saturday, May 2, 2009

This Week's Busted Banks

Another three banks brings the total after four months to 32.
Regulators seized banks in Georgia, New Jersey and Utah yesterday, boosting the tally of failed lenders in the U.S. this year to 32 and tapping more than $1.4 billion from the federal government’s deposit-insurance fund.

Silverton Bank of Atlanta, a commercial bank, was shut by the Office of the Comptroller of the Currency. Citizens Community Bank of Ridgewood, New Jersey, and America West Bank of Layton, Utah, were seized by state regulators. The Federal Deposit Insurance Corp. was named receiver for all three. Silverton was the largest failure since Downey Financial Corp. was shut in November, costing the FDIC about $1.37 billion.

The FDIC’s deposit-insurance fund, supported by fees on insured banks, fell 45 percent to $18.9 billion in the fourth quarter after 25 banks closed in 2008 amid the worst financial crisis since the Great Depression. The U.S. economy contracted at a 6.1 percent annual rate from January through March, the weakest performance since 1957-1958.

Still on track for nearly 100 bank failures this year folks. And these are the banks the FDIC has to admit to letting fail.

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