revision
05-24-2009, 12:16 PM
US bank closures hit 36 this year
Sun, 24 May 2009 08:25:12 GMT
http://www.presstv.com/detail.aspx?id=95809§ionid=3510213
Two Illinois banks have been closed by regulators, bringing to 36 the total number of US bank failures so far this year.
The closure of Citizens National Bank and Strategic Capital Bank is estimated to cost the Federal Deposit Insurance Corp. (FDIC) around $279 million.
Citizens National and Strategic Capital were bought by Morton Community Bank and Midland States Bank, respectively.
Citizens National had $400 million in deposits as of May 13 and $437 million in assets, $240 million of which were purchased by Morton. Strategic Capital had deposits worth $471 million as of May 13 and $537 million in assets, around $536 million of which were bought by Midland States.
FDIC will retain the two banks' remaining assets for later disposition.
The latest bank closures come as the National Conference of State Legislatures names Illinois as one of the US states facing massive budget deficits.
The situation is much worse for California, which is grappling with a record cash freeze plus a burgeoning 42-billion-dollar budget deficit.
Governor Arnold Schwarzenegger called Friday for less public spending in a bid to prod the sinking economy, only two days after Californians rejected his budget propositions meant to enhance sales and revenue.
A Wall Street Journal study published on Tuesday found that more than 900 small and midsized US banks could face losses of $100 billion by the end of 2010 if the economy continues its fast freefall.
Sun, 24 May 2009 08:25:12 GMT
http://www.presstv.com/detail.aspx?id=95809§ionid=3510213
Two Illinois banks have been closed by regulators, bringing to 36 the total number of US bank failures so far this year.
The closure of Citizens National Bank and Strategic Capital Bank is estimated to cost the Federal Deposit Insurance Corp. (FDIC) around $279 million.
Citizens National and Strategic Capital were bought by Morton Community Bank and Midland States Bank, respectively.
Citizens National had $400 million in deposits as of May 13 and $437 million in assets, $240 million of which were purchased by Morton. Strategic Capital had deposits worth $471 million as of May 13 and $537 million in assets, around $536 million of which were bought by Midland States.
FDIC will retain the two banks' remaining assets for later disposition.
The latest bank closures come as the National Conference of State Legislatures names Illinois as one of the US states facing massive budget deficits.
The situation is much worse for California, which is grappling with a record cash freeze plus a burgeoning 42-billion-dollar budget deficit.
Governor Arnold Schwarzenegger called Friday for less public spending in a bid to prod the sinking economy, only two days after Californians rejected his budget propositions meant to enhance sales and revenue.
A Wall Street Journal study published on Tuesday found that more than 900 small and midsized US banks could face losses of $100 billion by the end of 2010 if the economy continues its fast freefall.