3 Banks Shutdown Bringing Year Total to 20

Posted by Deepak

March 24, 2009

Three more banks in Kansas, Georgia, and Colorado were seized bringing the total banks that have been shut down to 20. These banks had a total of $1.1 billion in assets. This might be the time to get an internet bank account as these banks usually don’t participate in bad lending.

Deposits from TeamBank in Paola, Kansas, will be passed over to Great Southern Bank in Springfield, Missouri. Herring Bank in Amarillo, Texas, is passing deposits over to Colorado National Bank in Colorado Springs, Colorado. FirstCity Bank of Stockbridge, Georgia was unable to find a buyer so it will be shutting down and the FDIC will be sending insured funds to the banks’ depositors. CD rates have continued to plummet as a result of the recession.

There are 4.3 million less jobs in the US than there were before the recession began. Unemployment is currently at 8.8% which is the highest rate in 25 years. Experts believe credit cards may be the next market to get hit by the recession.

FirstCity customers join the ranks of Salf Lake City based MagnetBank which was seized on January 30th. All FDIC insured funds will be mailed to the depositers.

Banks lost $32 billion from October to December which is the first quarterly loss since 1991. The FDIC funds fell to 45 percent down to $19 billion as a result.