U.S. Government Bank 4 Back Cover
Bank May 28th, 2010
WASHINGTON – Government of the United States (U.S.) back over the four banks. Thus, the number of lots that have been closed for this year has as many as 26 banks.
As quoted by Reuters on Sunday (8/3/2010), the closure of banks was carried out due to poor credit quality of the bank provided. The largest of the four banks are closed Sun American Bank of Boca Raton, Florida which has assets worth USD535, 7 million and deposits of USD443, 5 million.
In addition, regulators shut down Centyinnial Bank of Odgen Utah, Waterfield, Bank of Germantown in Marryland and the Bank of Illinois of Normal.
In the meantime, Chairman of the Federal Deposit Insurance Corporation (the FDIC) Sheila Bair predicted the bank failures will remain high until 2010, although the economy has been running better. Where the banking industry continues to experience losses from poor credit quality.
During 2009, the government listed 140 banks had closed. Significant rise compared to 2008 which only 25 banks and 2007 that only three banks are closed.
The banking industry has shifted from the initially focus only on mortgage financing (mortgage) and insurance assets (securities) to switch to loans in the retail and commercial hit by the crisis.
Furthermore, 12 branches of Sun American Bank will be open again on Monday as branches of First-Citizens Bank & Trust Company of Raleigh, North Carolina. However, FDIC can not find a buyer for Centennial Bank that a guarantee will be sent on Monday to retail depositors to fund their insurance.
FDIC also must create new depository institutions to take over the operations of Waterfield Bank. and the bank will remain open until 5 April the next to allow depositors to access their insurance funds and time to move their accounts.
While Heartland Bank and Trust of Bloomington, Illinois, agreed to take over the deposits from the Bank of Illinois, the two branches will reopen Saturday as branches of the Heartland.
