[DEBATE] : Collapsed banks pile up in U.S. - 6 banks every month in 2009

[Riaz K Tayob]

Date:04/05/2009 URL: 
http://www.thehindu.com/2009/05/04/stories/2009050455641400.htm Back

International

Collapsed banks pile up in U.S.

— Photo: AFP

Sour note: People demonstrate in the financial district in New York City 
recently.

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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