Six more banks failed based on FDIC data on December 4, including Greater Atlantic Bank, Benchmark Bank, AmTrust Bank, The Tattnall Bank, First Security National Bank and The Buckhead Community Bank. The latest collapses bring the bank failure tally to 130 for the year.
According to the FDIC, collapse of these six banks would cost the agency as much as $2.38 billion.
Among them, the failure of AmTrust Bank, one of the largest in the country, alone would cost $2 billion. The entity had assets worth $12 billion and deposits to the tune of $8 billion as on October 27, 2009. Bank's branches will be taken over by New York Community Bank.
The maximum number of collapses this year took place in July, when 24 banks were closed down, while 20 entities bite the dust in October.
Small and medium banks are bearing the brunt of the financial meltdown, with higher unemployment resulting in increased defaults.
Source: Financial News Date: 06.12.2009 [243]
Financial News
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