Source: Press TV (US Desk)
Five U.S. banks in Michigan, Georgia and Florida have been closed by regulators, bringing the total number of bank failures for the year so far to 39, as the credit crunch continues to take a toll on financial institutions.
The Federal Deposit Insurance Corp. (FDIC) said Mount Clemens, Mich.-based Community Central Bank; Valdosta, Ga.-based The Park Avenue Bank; Dallas, Ga.-based First Choice Community Bank; Brooksville, Fla.-based Cortez Community Bank; and Winter Park, Fla.-based First National Bank of Central Florida were all closed.
The collective failure of the five banks will cost the federal deposit-insurance fund $643.2 million, the FDIC said.
FACTS & FIGURES
According to FDIC, nearly 340 banks have been seized by the government since 2008. The total number of bank failures in 2011 has so far been 39, compared to 157 in 2010, 140 in 2009, 25 in 2008 and just 3 in 2007. FDIC
More than 10 percent of the U.S.'s 7,760 banks still are in financial trouble. Rawstory
Nearly one hundred banks now being in shaky condition got more than $4.2 billion in infusions from the Treasury Department under the Troubled Asset Relief Program (TARP). Wall Street Journal
The Federal Reserve's two rounds of asset purchases total $2.3 trillion, including a 600-billion-dollar stimulus. This is the last stimulus of its kind following the previous 1.7-trillion dollar bond purchase by the Fed in 2009. Bloomberg
Many economists believe the U.S. bailout plan will stoke inflation and make it more difficult to get out of the economic crisis. Curious Capitalist