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US sees 20 bank failures in less than 3 months

US sees 20 bank failures in less than 3 months
PTI
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First Published: Sun, Mar 22 2009. 04 49 PM IST
Updated: Sun, Mar 22 2009. 04 49 PM IST
New York: The ongoing financial crisis, termed as the worst since the Great Depression, has claimed 20 US banks as its victims so far this year.
In the first two months of this year, 16 banks went belly up which is more than half the total number of such failures in 2008. Last year, 25 banks were closed by the US authorities.
The Federal Deposit Insurance Corporation, which is often appointed as the receiver for failed banks, said TeamBank, Colorado National Bank and FirstCity Bank were shut on 20 March.
On 6 March, Freedom Bank of Georgia had collapsed.
With the collapse of Teambank National Association of Paola, Kansas, Colorado National Bank of Colorado Springs and FirstCity Bank based in Stockbridge, GA, a whopping 72 banks have collapsed since 2000.
Majority of the bank failures happened last year after the financial situation worsened with the bankruptcy of 158- year-old investment banking entity Lehman Brothers in September.
Kansas-based Teambank had assets of $669.8 million and total deposits of $492.8 million. To protect the depositors, the FDIC entered into a purchase and assumption agreement with the Great Southern Bank to assume all of the deposits of Teambank and would pay $18.8 million.
FirstCity Bank, had USD 297 million of assets and $278 million of deposits as of 18 March, while Colorado National had total assets of USD 123.5 million and total deposits of $82.7 million as of 31 December, 2008.
The deposits of TeamBank would be taken over by the Great Southern Bank in Springfield, Missouri. Herring Bank in Amarillo, Texas, would control the deposits of Colorado National Bank.
On 6 March, the Freedom Bank of Georgia had collapsed, with assets of $173 million and deposits worth $161 million as on 4 March, 2009.
In February, 10 banks were closed, making it the highest for any month since 2000. A total of six banks had failed in January.
Security Savings Bank, Heritage Community Bank, Silver Falls Bank, Beaverton and Alliance Bank, National Bank of Commerce, and Ocala National Bank are among the entities which collapsed this year.
Starting January 2008, a whopping 42 banks have failed which is more than half the total collapses since 2000. However, there were no bank failures in 2005 and 2006.
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First Published: Sun, Mar 22 2009. 04 49 PM IST
More Topics: Banks | Failures | AIG | US | Recession |