US banks failure toll reaches 123 so far in 2009

   
 15 November 2009,


NEW YORK: The number of bank failures in the US has continued
to increase with a staggering 123 entities going out of business so far this year,
despite the economy witnessing some signs of recovery.

The authorities shut down three banks -- Orion Bank based
 in Naples, Pacific Coast National Bank in San Clemente
and Century Bank F.S.B of Sarasota on November 13,
 taking the count of failed banks to 123 this year.

The Federal Deposit Insurance Corp (FDIC), which was
 named the receiver of the failed banks, took over
Orion Bank, with about USD 2.7 billion in assets and
 USD 2.1 billion in deposits and Century Bank with
USD 728 million in assets and USD 631 million in deposits.

Meanwhile, Pacific Coast National Bank was also
 shut down. It had USD 134.4 million in assets and
 USD 130.9 million in deposits.

In addition, FDIC had entered into a purchase and
assumption agreement with Iberia Bank of Lafayette,
Louisiana, to assume all of the deposits of Century Bank, FSB.

However, the maximum number of collapses this year
 took place in July, when 24 banks were closed down,
 while 20 entities bite the dust last month.

Despite the slowly improving economic situation,
soaring unemployment rate have resulted in rising
defaults, primarily impacting the small and medium banks.