72 US banks shut down this year
The US regulators have seized four more banks across the country, bringing to 72 the number of banks to have failed this year amid a sustained economic meltdown.
The Federal Deposit Insurance Corp. took over the Midwest Bank and Trust in Illinois on Friday. The Bank has about $2.4 billion in deposits and $3.2 billion in assets.
The FDIC also shuttered three smaller banks in Georgia, Michigan and Missouri on the same day.
The FDIC Chairman Sheila Bair has said she expects failures to slow, yet they still exceed last year’s total of 140, wrote the Business Week.
The US bank failures are taking place amid losses on residential and commercial real estate loans, and the FDIC’s list of “problem” lenders is the longest since 1992, at 702.
Last year’s bank collapses cost the FDIC more than 30 billion dollars. The insurance fund expects it will cost about 100 billion dollars to resolve the costs over the next four years.