Bank closures hit 17-year high as US regulator shuts down another nine
REGULATORS closed nine more American banks, all owned by the same holding company, on Friday.
A month ago the banks had combined assets of $19.4bn (£11.7bn) and deposits of $15.4bn, says the Federal Deposit Insurance Corporation (FDIC).
The banks were all subsidiaries of FBOP, a holding company based in a suburb of Chicago.
There have now been 115 closures in the US this year, the first time since 1992 that more than 100 banks have gone under.
The banks which closed were Bank USA, Phoenix; California National Bank, Los Angeles; San Diego National Bank, San Diego; Pacific National Bank, San Francisco; Park National Bank, Chicago; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas.
FDIC says the US Bank of Minneapolis will assume the banks’ deposits.