Saturday, May 21, 2011

Three more banks closed in US

US banking regulators have closed two banks in Georgia and a small bank in Washington (file photo).

Source: Press TV

Banking regulators have announced the closure of two banks in Georgia and a small bank in Washington, bringing the total number of US bank failures so far this year to 43.

According to the Federal Deposit Insurance Corp., Atlantic Southern Bank of Macon with USD 741.9 million in assets and First Georgia Banking Co. of Franklin with USD 731 million in assets were shuttered in the state of Georgia on Friday, The Wall Street Journal reported.

The closures in Georgia -- one of the hardest-hit states in bank failures -- raised the number of bank closures in the state for this year to 12, more than double the amount in Florida, which has the second most.

The Federal Deposit Insurance Corp. also seized Summit Bank in Burlington with USD 142.7 million in assets, marking the first bank failure of 2011 in the state of Washington.

The continued wave of bank failures comes against the backdrop of a sluggish economic recovery and mounds of soared loans that forced regulators to close 73 US banks by this time last year.

The failures of Atlantic Southern Bank, First Georgia Banking and Summit Bank are expected to cost the deposit insurance fund USD 273.5 million, USD 156.5 million and USD 15.7 million respectively, according to the report.

In 2010, 157 banks with total assets of USD 92 billion caved in, compared to 140 bank failures in 2009 with total assets of USD 169.7 billion.

Florida and Georgia have been the hardest-hit US states in bank failures. Twenty nine banks were closed down in Florida last year and 16 in Georgia.

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