More Banks Fail in Five States

2 years ago

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Federal regulators have shut down more banks in Georgia, Michigan, Minnesota, Missouri and California.

The closures Friday bring the number of bank failures this year to 120, the most in a year since 1992 at the height of the savings-and-loan crisis. Last year 25 banks failed, and three were shut down in 2007.

This year Georgia has seen 21 banks go under, more than any other state. California and Illinois have also experienced a number of closures.

Here are the banks taken over by the Federal Deposit Insurance Corp. on Friday, according to the Associated Press:

-- United Commercial Bank in San Francisco, with $11.2 billion in assets and $7.5 billion in deposits. East West Bancorp Inc., parent company of East West Bank based in Pasadena, Calif., is buying all of the deposits and most of the failed bank's assets.
-- United Security Bank, based in Sparta, Ga., with $157 million in assets and $150 million in deposits; -- Home Federal Savings Bank in Detroit, with $14.9 million in assets and $12.8 million in deposits;
-- Prosperan Bank, based in Oakdale, Minn., with $199.5 million in assets and $175.6 million in deposits;
-- Gateway Bank in St. Louis, with $27.7 million in assets and $27.9 million in deposits.

The FDIC says depositors' accounts are insured up to $250,000 each and are not at risk. The FDIC has billions in loss reserves and can also tap a Treasury Department credit line of up to $500 billion.

Filed Under: Economy, Wall Street

Tagged: bank closures, BankClosures, banks, Daily Guidance, DailyGuidance, FDIC

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