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Subject: 

Banks


Date: 

Sun, 06 Sep 2009 18:36:20 -0400


From: 

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http://www.dailyfinance.com/2009/09/05/five-more-banks-shuttered-2009-total-
now-89/


Five more banks shuttered, bringing '09 total to 89


Douglas McIntyre <http://www.dailyfinance.com/bloggers/douglas-mcintyre/>
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Filed under: Company News
<http://www.dailyfinance.com/category/company-news/> , Economy
<http://www.dailyfinance.com/category/economy/> 

 
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Image removed by sender.Regulators closed five more banks Friday night,
bringing the total number of failures this year to 89, as losses on bad
mortgages and construction loans continue to plague the financial industry.

Located in Illinois, Iowa, Kansas and Arizona, the banks will cost the
Federal Deposit Insurance Corp., the federal agency in charge of taking them
over when they fail, a total of $401 million to close. Some observers say
the price tag for these failures is becoming an issue; the agency has only a
little over $10 billion in its account and will have to go to the Treasury
if that sum rapidly dwindles.

Near Chicago, InBank was shut down by
<http://www.fdic.gov/news/news/press/2009/pr09162.html>  regulators. It had
$199 million in deposit. Chicago-based MB Financial Bank has agreed to
assume its deposits. InBank's failure will cost the deposit insurance fund
$66 million. 

Also in northern Illinois, Platinum Community Bank was closed by
<http://www.fdic.gov/news/news/press/2009/pr09164.html>  the Office of
Thrift Supervision and the FDIC was made the receiver. The bank had total
assets of $345.6 million and deposits of $305 million, the FDIC said. It
authorized payout of insured deposits and estimated the cost to its Deposit
Insurance Fund will be $114.3 million. MB Financial Bank will take the
failed bank's direct deposits. 

First Bank of Kansas City was also closed
<http://www.fdic.gov/news/news/press/2009/pr09161.html> . The FDIC said
Great American Bank has agreed to assume the failed bank's deposits. First
Bank had $16 million in assets and $15 million in deposits. Its failure is
expected to cost the federal deposit insurance fund $6 million. 

In Arizona, First State Bank of Flagstaff's $95 million in deposits and $105
million in assets were sold off to
<http://www.fdic.gov/news/news/press/2009/pr09165.html>  Sunwest Bank, based
in Tustin, Calif. 

And Vantus Bank in Sioux City, Iowa was also seized by
<http://www.fdic.gov/news/news/press/2009/pr09163.html>  the FDIC. Great
Southern Bank of Springfield is assuming Vantus' $368 million in deposits.

The most pessimistic analysts think a total of 300 or more banks may be shut
in the next two years. The process still has a long way to go.

Douglas A. McIntyre is an editor at 24/7 Wall St. 

 

 

 

 

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