FOUR MORE US BANKS CLOSE, TOTAL HITS 20 FOR 2010

The Federal Deposit Insurance Corp, in charge of safeguarding bank deposits and resolving failed banks, has predicted that 2010 will be peak year for failures resulting from the recent financial crisis. It has warned that the banking industry's recovery will lag the overall economy as institutions continue to cope with deteriorating loans, many originated during the credit boom that ended when the housing bubble burst. 

The FDIC said that regulators had closed four banks: the George Washington Savings Bank in Illinois, La Jolla Bank in California, La Coste National Bank in Texas and Marco Community Bank of Marco Island, Florida.

The FDIC's insurance fund balance is in the red, but the agency has said it has plenty of cash on hand to deal with failures and protect deposits. It also has the potential to tap its $500 billion line of credit with Treasury.

Last year, 140 banks failed, compared to 25 in 2008 and only three in 2007.


Source: http://economictimes.indiatimes.com/news/international-business/Four-more-US-banks-close-total-hits-20-for-2010/articleshow/5596939.cms