US banks fail, another three, lifting this year’s tally to 40

by khalid on 21/06/2009 · 0 comments

US regulators on Friday shut down three small banks, pushing this year’s tally of failed banks to 40.
One bank was in North Carolina, another in Georgia, and the third was in Kansas. The wave of bank failures is expected to continue throughout the year as the weak housing market and rising unemployment rate cause more borrowers to default on their loans.
The FDIC said it estimates that Cooperative Bank’s failure will cost the deposit insurance fund $217 million. Southern Community Bank’s will cost $114 million, and First National Bank of Anthony’s will cost $32.2 million.
The largest US bank failure ever was last year: Seattle-based thrift Washington Mutual Inc. fell in September, with about $307 billion in assets. It was acquired by JPMorgan Chase & Co. for $1.9 billion in a deal brokered by the FDIC.

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