Reccession, 35th American Bank Fails

by khalid on 23/05/2009 · 0 comments

Illinois bank ( Strategic Capital ) failed on Friday, bringing the total bank failures for 2009 to 35, up from 25 in all of 2008.

The failure of the Champaign, Ill.-based bank will cost the Federal Deposit Insurance Corp.’s deposit insurance fund $173 million.

Strategic had $471 million in deposits and $537 million in assets.

The bank’s deposits were acquired by Midland States Bank of Effingham, Illinois. Midland took $536 million of Strategic’s assets, leaving just $1 million for the FDIC to sell. Deposits are sought after by other banks, as they can be used to loan against. But assets include things like troubled mortgages and other housing-related products that are often not desirable in this market.

Strategic Capital Bank will reopen on Tuesday as a branch of Midland States Bank.

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