Worst not yet over for US banks, 95 shut doors this year
The economy might be slowly clawing out of the worst crisis in decades but the US bank failures are climbing by the day, with 95 of them going bust this year alone.india Updated: Sep 27, 2009 11:55 IST
The economy might be slowly clawing out of the worst crisis in decades but the US bank failures are climbing by the day, with 95 of them going bust this year alone.
Painting a gloomy picture, Federal Deposit Insurance Corporation, the body often appointed as caretaker of failed entities, recently said the count of problem banks, which are at the risk of collapsing, have jumped to 416 in the second quarter of 2009. The number of failed banks for last year stood at 25.
The Georgian Bank became the latest casualty after it was shut down by authorities on Friday, taking the tally for September to 11.
According to FDIC, the latest collapse would cost the agency USD 892 million.
As of July 24, 2009, Georgian Bank had assets of USD 2 billion and deposits worth USD 2 billion.
Since July, a staggering 50 banks have crashed while the month itself saw 24 of them bite the dust, the highest for a month this year.
Mostly small and medium banks are bearing the brunt of the financial turbulence, as increased unemployment is resulting in higher defaults.