(wire)
FDIC seizes four more banks
The Federal Deposit Insurance Corp. (FDIC) seized control of four financial institutions over the weekend, bringing the total for the year so far up to 26.
The FDIC took over Sun America Bank, with $535.7 million assets and $443.5 million deposits. In addition, it seized Bank of Illinois, with $211.7 million in assets and $198.5 million in deposits; Waterfield Bank, with $155.6 million in assets and $156.4 million in deposits; and Centennial Bank, with $215.2 million in assets and $205.1 million in deposits.
According to FDIC officials, the rate of bank seizures will likely increase in the next few months, due to a weakened economy, rising unemployment, and falling home prices taking their toll on the deposit insurance fund.
Meanwhile, banks have adopted stricter lending standards, with U.S. bank lending posting its sharpest decline since World War II, falling $587.3 billion, or 7.5 percent.
The FDIC took over Sun America Bank, with $535.7 million assets and $443.5 million deposits. In addition, it seized Bank of Illinois, with $211.7 million in assets and $198.5 million in deposits; Waterfield Bank, with $155.6 million in assets and $156.4 million in deposits; and Centennial Bank, with $215.2 million in assets and $205.1 million in deposits.
According to FDIC officials, the rate of bank seizures will likely increase in the next few months, due to a weakened economy, rising unemployment, and falling home prices taking their toll on the deposit insurance fund.
Meanwhile, banks have adopted stricter lending standards, with U.S. bank lending posting its sharpest decline since World War II, falling $587.3 billion, or 7.5 percent.
