Bank Failures

CHICAGO - With the number of bank closings above 100 this year for the first time since 1992, the head of the Federal Deposit Insurance Corp. says she’s frustrated at perceptions that US taxpayers are on the hook for the costs of those failures. “We have not borrowed a penny from Treasury,’’ FDIC chairwoman Sheila Bair reiterated yesterday. “I hope we don’t have to. If we do, we’ll pay it back promptly.’’ In remarks to the American Bankers Association, Bair sought to dispel any false impression that the government is paying for the 106 banks that have been shut down so...

Bankia, the nationalized Spanish bank which had to reassure savers last week to fend off a reported run on its deposits, needs to strengthen its capital defenses by as much as (EURO)7.5 billion ($9.56 billion), the country's economy minister said Monday. The minister, Luis de Guindos, said Bankia needed to find around (EURO)7 billion to (EURO)7.5 billion to meet the Spanish government's new provisioning requirements designed to strengthen the country's banking industry against further economic shocks.

Regulators on Friday closed small banks in Illinois and Indiana, increasing to nine the number of U.S. bank failures this year, a slower pace than in 2011, when there were 92 bank closures. The number of closures already had dropped sharply in 2011 from the two previous years, when banks were working their way through the bad debt accumulated in the recession. But by this time last year, regulators had shuttered twice as many banks — 18. The Federal Deposit Insurance Corp.

Federal regulators have seized a small bank in Alabama, bringing to 24 the number of U.S. banks that have failed so far this year. The Federal Deposit Insurance Corp. said Friday that it closed Alabama Trust Bank NA in Sylacauga. The bank had about $51.6 million in assets and $45.1 million in deposits as of March 31. Southern States Bank, based in Anniston, Ala., agreed to take over the deposits and essentially all the assets of the failed bank, which had one branch.

WASHINGTON - Anticipating a surge in troubled financial institutions, federal regulators will increase by 60 percent the number of workers who handle bank failures. The Federal Deposit Insurance Corp. wants to add 140 workers to bring staff levels to 360 workers in the division that handles bank failures, John Bovenzi, the agency's chief operating officer, said yesterday. "We want to make sure that we're prepared," Bovenzi said, adding that most of the hires will be temporary and based in Dallas.

Regulators on Friday shut down a small bank in South Carolina, the 45th U.S. bank failure this year in the wake of economic distress and piles of bad loans. The pace of closures has slowed, however, as the economy improved and banks worked their way through the bad debt. By this time last year, regulators had closed 81 banks. The Federal Deposit Insurance Corp. seized Atlantic Bank and Trust, based in Charleston, S.C., with $208.2 million in assets and $191.6 million in deposits.

Federal regulators have seized a small bank in Alabama, bringing to 24 the number of U.S. banks that have failed so far this year. The Federal Deposit Insurance Corp. said Friday that it closed Alabama Trust Bank NA in Sylacauga. The bank had about $51.6 million in assets and $45.1 million in deposits as of March 31. Southern States Bank, based in Anniston, Ala., agreed to take over the deposits and essentially all the assets of the failed bank, which had one branch.

Bankia, the nationalized Spanish bank which had to reassure savers last week to fend off a reported run on its deposits, needs to strengthen its capital defenses by as much as (EURO)7.5 billion ($9.56 billion), the country's economy minister said Monday. The minister, Luis de Guindos, said Bankia needed to find around (EURO)7 billion to (EURO)7.5 billion to meet the Spanish government's new provisioning requirements designed to strengthen the country's banking industry against further economic shocks.

Regulators on Friday closed small banks in Florida and Arizona, boosting to 92 the number of bank failures in the U.S. this year. The number of closures has fallen sharply this year as banks have worked their way through the bad debt accumulated in the recession. By this time last year, regulators had shuttered 157 banks. The Federal Deposit Insurance Corp. seized Premier Community Bank of the Emerald Coast, based in Crestview, Fla., with $126 million in assets and $112 million in deposits, and Phoenix-based Western National Bank, with $162.9...

Regulators on Friday closed two small banks in Georgia, boosting to 70 the number of U.S. bank failures this year. The pace of closures has eased in 2011 as the economy has slowly improved and banks work their way through the bad debt accumulated in the recession. By this time last year, regulators had shuttered 118 banks. The Federal Deposit Insurance Corp. seized Patriot Bank of Georgia in Cumming, Ga., with $150.8 million in assets and $111.2 million in deposits, and CreekSide Bank in Woodstock, Ga., with $102.3 million in assets and $96.6 million in deposits.

Spain's economy minister said Tuesday that an independent audit of the toxic debts crippling the country' banks is expected to be ready within two months. Spain last week announced two external audits as part of its latest financial reforms. The measures are aimed at restoring confidence in the banking sector, which is at the core of the country's financial crisis. Speaking in Brussels, where he attended a meeting of EU finance ministers, Luis de Guindos said the idea of a bailout for Spain was not even mentioned at meeting of officials a day earlier.

Federal regulators have closed small banks in Georgia and Illinois, bringing to 15 the number of banks that have failed so far this year. The pace of bank closures has slowed sharply after ballooning following the financial crisis in 2008. By this time last year, 25 banks had failed. On Friday the Federal Deposit Insurance Corp. shuttered Covenant Bank & Trust in Rock Spring, Ga., and Premier Bank, based in Wilmette, Ill. Each bank operated two branches. Covenant Bank & Trust had about $95.7 million in assets and $90.6 million in deposits as of Dec. 31. Stearns...

Regulators have closed a small bank in Chicago, the 13th U.S. bank to fail this year. By this time last year, 23 had been shuttered. The Federal Deposit Insurance Corp. on Friday closed New City Bank, which had $71.2 million in assets and $72.4 million in deposits as of Dec. 31. The FDIC did not find another lender to take over the bank's operations, so it will mail out checks to depositors in the amount of their insured funds. The agency said it needs to obtain information from New City Bank customers to determine the number of uninsured deposits at the bank.

Regulators on Friday closed small banks in Illinois and Indiana, increasing to nine the number of U.S. bank failures this year, a slower pace than in 2011, when there were 92 bank closures. The number of closures already had dropped sharply in 2011 from the two previous years, when banks were working their way through the bad debt accumulated in the recession. But by this time last year, regulators had shuttered twice as many banks — 18. The Federal Deposit Insurance Corp.

U.S. banking regulators have filed suit against the director of a Puerto Rican bank, alleging that reckless lending and improper management led to the April 2010 collapse that cost the deposit insurance fund nearly $1.5 billion. Officers and directors of R-G Premier Bank failed to adequately supervise the huge increase in commercial lending during the housing boom and bust in the U.S. island territory, the Federal Deposit Insurance Corp. said in the lawsuit filed Wednesday in federal court in San Juan.

Regulators on Friday shut down small banks in Georgia and Florida, lifting to 47 the number of U.S. bank failures this year in the wake of economic distress and mounting soured loans. The pace of closures has slowed, however, as the economy improves and banks work their way through the bad debt. By this time last year, regulators had closed 83 banks. The Federal Deposit Insurance Corp. seized McIntosh State Bank, based in Jackson, Ga., with $339.9 million in assets and $324.4 million in deposits.