US Regulators close banks in four states

Discussion in 'World Affairs' started by Communist, Mar 6, 2010.

  1. Communist

    Communist SENIOR MEMBER

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    Regulators close banks in four states

    (Reuters) - U.S. bank regulators closed four banks in as many states on Friday, bringing the number of failures so far this year to 26 as deteriorating loans continued taking a toll on financial institutions.

    The largest of the four was Sun American Bank of Boca Raton, Florida, which had approximately $535.7 million in total assets and $443.5 million in total deposits, the Federal Deposit Insurance Corp (FDIC) said.

    Regulators also closed Centennial Bank of Odgen, Utah, Waterfield Bank of Germantown, Maryland, and Bank of Illinois of Normal, Illinois.

    FDIC Chairman Sheila Bair has said she expects bank failures to remain high through 2010, even as the economy improves, because the bank industry is continuing to recognize loan losses and clean up their balance sheets.

    Regulators closed 140 banks in 2009, up from 25 in 2008 and only 3 in 2007.

    The industry's woes are moving from residential loans and complex securities to more conventional types of retail and commercial loans hit hard by the recession.

    The 12 branches of Sun American Bank will reopen on Monday as branches of First-Citizens Bank & Trust Company of Raleigh, North Carolina, which is assuming the deposits and purchasing essentially all the assets, FDIC said.

    However, FDIC was unable to find a buyer for Centennial Bank so checks will be mailed on Monday to retail depositors for their insured funds, the agency said.

    The bank had approximately $215.2 million in total assets and $205.1 million in total deposits. An estimated $1.8 million of those funds were uninsured, but that number could change as more information becomes available, FDIC said.

    It encouraged customers with more than $250,000 in their accounts at Centennial to call the FDIC at 1-800-889-4976 to set up an appointment to discuss their deposits.

    The FDIC also had to create a new depository institution to take over the operations of Waterfield Bank.

    It said the new institution, also called Waterfield Bank, will remain open until April 5 to allow depositors access to their insured funds and time to move their accounts.

    Waterfield Bank had $155.6 million in assets and $156.4 million in deposits. After April 5, the FDIC will mail checks to customers who have not closed their accounts or transferred their funds to another institution.

    It estimated uninsured funds in Waterfield at about $407,000, but said that could change.

    Heartland Bank and Trust of Bloomington, Illinois, agreed to assume the deposits of Bank of Illinois, whose two branches will reopen on Saturday as branches of Heartland.

    FDIC said Bank of Illinois had $211.7 million in assets and $198.5 million in deposits. Heartland paid the FDIC a premium of 3.61 percent to assume the deposits and agreed to purchase essentially all of the failed bank's assets, FDIC said.

    (Reporting by Doug Palmer; Editing by Gary Hill)

    Regulators close banks in four states | Reuters
     
  2. Communist

    Communist SENIOR MEMBER

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  3. Communist

    Communist SENIOR MEMBER

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    Regulators shut down Florida bank; makes 23 US bank failures this year

    March 5th, 2010

    WASHINGTON — Regulators have shut down a bank in Florida, boosting to 23 the number of bank failures in the U.S. so far this year following the 140 brought down in 2009 by mounting loan defaults and the recession.

    The Federal Deposit Insurance Corp. on Friday took over Sun American Bank, based in Boca Raton, Fla., with $535.7 million in assets and $443.5 million in deposits. First-Citizens Bank & Trust Co., based in Raleigh, N.C., agreed to assume the assets and deposits of the failed bank.

    In addition, the FDIC and First-Citizens Bank & Trust agreed to share losses on $433 million of Sun American Bank’s loans and other assets.

    Regulators shut down Florida bank; makes 23 US bank failures this year
     
  4. Communist

    Communist SENIOR MEMBER

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    Where are you heading Mr super power?

    You don't have enough money, still military spending is more than 4% of the GDP... !!!

    Keep it up...
     
  5. Spitfighter

    Spitfighter SENIOR MEMBER

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    ^^When Mr.Superpower falls, everyone else falls behind him, including mighty China, whose survival is linked to the American consumer.

    China has a trillion dollars in bonds, so you might want to wipe that smile off your face.
     
  6. Creder

    Creder SENIOR MEMBER

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    I think one thing everybody here forgets while putting up these kinda news is that your own countrymen live in US too. If anything they're are going to be at the forefront of this meltdown. Pakistanis, Indians Chineese these countries have a sizable labour force in States that is gonna be affected the most by these kind of things.
     
  7. Communist

    Communist SENIOR MEMBER

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    I was not talking about india... I was talking about US...

    What is your problem?
     
  8. desiman

    desiman SENIOR MEMBER

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    dont worry the US is not anywhere mr.communist, stop dreaming :cheers:
     
  9. qsaark

    qsaark SENIOR MEMBER

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    Well, China is doing lots of business with the USA, but USA is not the only partner China has. If US's economy suffers, so will Chinese economy but not as much as many are hoping. Anyway, that is true that the signs of poor economy can be seen every where. I came to US in 2005, and the US of 2010 is definitely different than the US of 2005.
     
  10. Communist

    Communist SENIOR MEMBER

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    what is your problem...?

    where is india heading?

    I was not talking about shooofer pawer incredible india.....
     
  11. Spitfighter

    Spitfighter SENIOR MEMBER

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    Yeah, I know.

    Indians can't comment on issues that aren't related to India?
     
  12. Spitfighter

    Spitfighter SENIOR MEMBER

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    The US is China's largest trading partner, it makes sense, China is the world's largest exporter and the US is the world's largest consumer.

    If the American market crashes, so does the Chinese market, they are an intricate part of the American economy and vice versa. The Chinese also have a trillion US dollars in bonds, so they'd have a good reason to be worried if the dollar depreciates any more.

    The economy isn't doing great at the moment but there are signs of recovery, I'm sure it'll bounce back in a year or two.
     

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