72 US banks bite the dust in a week

On an average, 10 banks have gone belly up every month this year. In 2008, 25 banks went out of business.

In the first week of August, the authorities closed down three entities —– First State Bank, Community National Bank of Sarasota County and Community First Bank. According to the Federal Deposit Insurance Corporation (FDIC), which is often appointed as the receiver of failed banks, the collapsed three entities would cost the agency about US$ 180 million.

Small and regional banks are bearing the brunt of the economic turmoil as increased unemployment is resulting in more defaults. The count of failures is expected to rise before the economy is out of recession and fully stabilises. In July, a whopping 24 banks went belly up, the highest for any month in 2009. Interestingly, in the second quarter, the American GDP contracted just one per cent, much less than anticipated. Further, the jobless rate has dipped to 9.4 per cent in July.

Seven banks each were closed down on July 2 and July 24. The authorities shut down nine banks in June and seven in May. There were 10 bank failures in February.

The entities which bite the dust this year include First State of Altus, Peoples Community Bank.

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