[DEBATE] : Collapsed banks pile up in U.S. - 6 banks every month in 2009
Riaz K Tayob
riaz.tayob at gmail.com
Mon May 4 08:45:39 BST 2009
Collapsed banks pile up in U.S.
— Photo: AFP
Sour note: People demonstrate in the financial district in New York City
New York: Starting the month on a sour note, three more American lenders
have been closed down, making it an average of six bank failures every
month in 2009.
A staggering 32 banks have gone belly up so far this year, a toll much
higher than 25 collapses for the whole of 2008.
The latest to join the league of failures are Silverton Bank, Citizens
Community Bank and America West Bank.
According to the Federal Deposit Insurance Corporation, which is often
appointed as the receiver for failed banks, all the three entities were
shut down on May 1.
At the time of closing, Silverton Bank had assets worth $4.1 billion and
deposits to the tune of $3.3 billion.
A total of 46 banks have collapsed since September 2008 when the current
financial crisis turned severe, following the bankruptcy of Wall Street
titan Lehman Brothers. U.S. banks, especially the smaller ones, are
being shuttered almost every week in 2009.
In another reminder of the grim economic scenario, a stunning 57 banks
have failed since January 2008. — PTI
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