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US bank collapses touch 45 in 2009

US bank collapses touch 45 in 2009
PTI
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First Published: Sun, Jun 28 2009. 02 35 PM IST
Updated: Sun, Jun 28 2009. 02 35 PM IST
New York: Forty five banks have failed in the United States this year, with an average of seven entities going belly up every month.
Five banks collapsed on 26 June, taking the toll to 45, which is much higher than 25 such failures for the whole of 2008.
More banks, especially the smaller ones, are expected to collapse in the coming months, even though the economic turmoil seems to be easing.
The Federal Deposit Insurance Corporation, which is often appointed as the caretaker of failed entities, has said five banks were shuttered on 26 June.
The latest names to join the failed list are Mirae Bank, Metro Pacific Bank, Horizon Bank, Neighborhood Community Bank and Community Bank of West Georgia.
Last week, the authorities shut down three banks -- First National Bank of Anthony, Cooperative Bank and Southern Community Bank.
Recently, the FDIC said the number of “problem banks” in the country have increased to 15-year-high of 305 in the first quarter of 2009. The count stood at just 252 in the December quarter.
A staggering 70 banks have gone burst since January 2008.
Four banks each were shut down on 13 February and 24 April, while three banks each collapsed on 30 January, 6 February and 20 March.
The world’s largest economy officially entered into recession in December 2007.
Official data has shown that the US economy shrank 5.5% in the first quarter of this year, less than earlier expected.
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First Published: Sun, Jun 28 2009. 02 35 PM IST
More Topics: US | Banks | Recession | Economy | Money Matters |