US bank failures near 100
(20 October 2009 – USA) The Federal Deposit Insurance Corporation (FDIC) has closed California’s San Joaquin Bank, bringing the total number of bank failures for the year to 99.
The FDIC entered into an agreement with Citizens Business Bank of Ontario, California, to take San Joaquin's deposits and most of its assets. As of September 29, 2009, San Joaquin had total assets of US$775 million (A$835 million) and total deposits of approximately US$631 million, according to the FDIC.
The FDIC estimates that the failure of San Joaquin Bank will cost the deposit insurance fund around US$103 million.
As recently as last Wednesday, bank executives were hopeful that regulators would continue to give them more time to raise money.
Even though the rate at which US banks are failing has slowed, the future for small banks continues to look grim and regulators continue to remain concerned about the concentration and condition of commercial real estate loans.
As of June, the FDIC had recorded 416 banks on its problem bank list; the regulator does not reveal the names of the institutions on the list.
The 99th closure comes after the advisory committee held a meeting on the impact of the financial crisis on community banks.
Sheila C Bair, chairman, FDIC, said that the committee had robust discussions about the critical issues to both the FDIC and the nation’s banks, and that the committee has some ideas that they will pursue.
The FDIC estimates that the failure of San Joaquin Bank will cost the deposit insurance fund around US$103 million.
As recently as last Wednesday, bank executives were hopeful that regulators would continue to give them more time to raise money.
Even though the rate at which US banks are failing has slowed, the future for small banks continues to look grim and regulators continue to remain concerned about the concentration and condition of commercial real estate loans.
As of June, the FDIC had recorded 416 banks on its problem bank list; the regulator does not reveal the names of the institutions on the list.
The 99th closure comes after the advisory committee held a meeting on the impact of the financial crisis on community banks.
Sheila C Bair, chairman, FDIC, said that the committee had robust discussions about the critical issues to both the FDIC and the nation’s banks, and that the committee has some ideas that they will pursue.
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