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Four more banks failed on Friday and were taken over by the FDIC. This makes 119 total for the year, the highest yearly total since the 1992 savings-and-loan failures.
From USA Today:
“Regulators on Friday shut small banks in Georgia, Michigan, Minnesota and Missouri, bringing the number of bank failures this year to 119 amid the struggling economy and a cascade of defaults on loans.
The Federal Deposit Insurance Corp. took over United Security Bank, based in Sparta, Ga., with $157 million in assets and $150 million in deposits, and Home Federal Savings Bank in Detroit, with $14.9 million in assets and $12.8 million in deposits.
The government agency also closed Prosperan Bank, based in Oakdale, Minn., with $199.5 million in assets and $175.6 million in deposits, and Gateway Bank in St. Louis, with $27.7 million in assets and $27.9 million in deposits.”
The article states that high unemployment has led to home foreclosures, while the poor economy has caused businesses to fail resulting in defaults on commercial properties.
The 119 total failures this year compare with 25 last year and 3 the year before that. The FDIC’s list of troubled banks has grown to 416, the most since 1994.