US Bank Failures Rise to 85 in 2011

October 29 00:00 2011

New York, October 29 (RainbowNewsLine.com) – The number of bank failures in the U.S. rose to 85 so far this year with regulators closing All American Bank of Des Plaines, Ill., with one branch. The tally this year is way behind the bank failures last year when regulators had shut down 139 banks by this time, as banks have worked their way through the bad debt accumulated in the recession.

While closing the bank in Illinois, the regulators seized $37.8 million in assets and $33.4 million in deposits. The assets and deposits of the failed bank were taken over by International Bank of Chicago, based in Chicago. The deposit insurance fund stands to lose $6.5 million as a result of the failure of the All American bank.

Regulators had closed 16 banks in Illinois last year and All American Bank is the ninth bank to be closed so far this year. Along with Illinois, the other states that have seen large number of bank failures are California, Florida and Georgia.

2010 was the worst year for bank failures since the savings and loan crisis two decades ago with 157 banks being seized by regulators and costing around $23 billion. In 2009, 140 bank failures took place costing the insurance fund about $36 billion. In 2008, there were 25 bank failures and in 2007, only three banks were closed.

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