US sees 40 bank collapses in less than six months | india | Hindustan Times
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US sees 40 bank collapses in less than six months

Three more American banks have collapsed pushing the total number of such failures this year up to 40, as the world's largest economy continues to reel under recession.

india Updated: Jun 21, 2009 14:19 IST

Three more American banks have collapsed pushing the total number of such failures this year up to 40, as the world's largest economy continues to reel under recession.

Reflecting the mounting woes of the nation's financial system, the total count of bank collapses in just less than six months has touched 40, whereas for the whole of 2008 the
number stands at 25.

The latest ones to go belly up are Southern Community Bank, Cooperative Bank and First National Bank of Anthony.

According to the Federal Deposit Insurance Corporation (FDIC), which is often appointed as the caretaker of the failed banks, all the three were shuttered on June 19.

Since September 2008, when the financial turmoil turned worse with the collapse of Lehman Brothers, the number of bank failures reached 54 and is anticipated to climb in the coming months.

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, indicating that the economic situation has worsened in the ensuing months.