U.S. Bank Failures Rise To 94
By John Letzing, MarketWatch
SAN FRANCISCO (MarketWatch) -- Two Irwin Union Bank subsidiaries in Kentucky and Indiana were closed by regulators Friday, bringing the total number of U.S. bank failures this year to 94 and punching an $850 million hole in the federal deposit insurance fund.
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First Bank Failures Announced In Indiana; Kentucky
The first bank failures in Indiana and Kentucky were announced, Friday. The Federal Deposit Insurance Corporation announced it was appointed receiver for Louisville, Kentucky-based Irwin Union Bank, F.S.B., and Columbus, Indiana-based Irwin Union Bank and Trust Co., by the Office of Thrift Supervision and the Indiana Department of Financial Instutions, respectively.
The two failed banks have a total of 27 bank branches and are subsidiaries of the Columbus, Indiana-based Irwin Financial Corporation. Irwin Union Bank and Trust Co. had a total of $2.7 billion in assets and deposits of $2.1 billion, and Irwin Union Bank had total assets of $493 million and deposits of $441 million as of Aug. 31, of this year.
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More Bank Failures Coming
Read more: http://www.fiercefinance.com/story/more-bank-failures-coming/2009-09-17#ixzz0RWO5obbt
So far this year, the Federal Deposit Insurance Corp. has shut down 92 banks. That compares with 25 banks last year. Business Week notes that this might be seen as surprisingly few closures. During the last banking crisis, 381 banks were seized in 1990, 268 in 1991, and 179 in 1992. But the crisis isn't over, and the pace of bank failures is picking up.
Three banks failed over the last few days, including Corus Bank of Illinois. Since July 1, the FDIC has closed down 47 banks. Meredith Whitney predicted not too long ago that 300 banks would fail this year. That's looking more and more prescient every week. Real estate, retail and especially commercial, remains the culprit. Construction loans are also creaking right now.
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WASHINGTON — The chairman of the Federal Deposit Insurance Corp. says she is "considering all options, including borrowing from Treasury," to replenish the dwindling fund that insures bank deposits.
"I never say never," FDIC Chairman Sheila Bair told an audience at Georgetown University Friday.
Bair's remarks go beyond what she said just three weeks ago when asked about tapping the Treasury after the fund that insures regular deposit accounts up to $250,000 hit its lowest point since 1992, at the height of the savings-and-loan crisis. "Not at this point in time," she said on Aug. 27.
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