Re: US banks failures hit 140

On Sat, Dec 19, 2009 at 4:16 PM, satyamevijayte <j4junaid4@yahoo.com> wrote:

Sat, 19 Dec 2009 08:25:58 GMT    A man walks by a closed downtown bank in Bridgeport, Connecticut in this file photo. SSeven more US banks have been shut down by regulators, bringing to 140 the number of failed American banks this year. Two of the biggest closures were in California. The rest were in the states of Alabama, Florida, Georgia, Michigan and Illinois. Banks with $14.4 billion in total assets were seized in six states, the Federal Deposit Insurance Corporation (FDIC) said in a statement on Friday. The Federal Bank in California was the biggest lender which failed with over $6 billion in assets. The FDIC has increased its budget for the next year by 56 percent to $4 billion to manage further shutdowns. The budget "will ensure that we are prepared to handle an ever-larger number of bank failures next year, if that becomes necessary," Bloomberg quoted FDIC Chairman Sheila Bairas. Despite talk of the recession 'bottoming out', the rate of bank failures shows no sign of abating. The FDIC says the pace of failures will likely peak in 2010. Last year, 25 US banks failed, compared with only three in 2007. During the current financial crisis, Washington Mutual, with about 307 billion dollars in assets, became the biggest bank to fail in US history.

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Palash Biswas
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