Another 5 US Banks Close Down

The closure of another five U.S. banks was announced yesterday by the financial regulatory authorities in the U.S., increasing the number of bankruptcies recorded since the outbreak of the financial crisis. Specifically, the banks are: Columbia River Bank in Oregon, with $ 1.1 billion in resources and $ 1 billion in deposits on 30 September, Charter Bank in Santa Fe, with 1.2 billion dollars in funds and 851, 5 million dollars in deposits as of September 30, Evergreen Bank in Seattle, Premier American Bank in Miami and Bank of Leeton, Missouri.

The Federal Deposit Insurance Company (FDIC) estimates that bankruptcies will reach high levels this year, especially among smaller banks, as banks continue to face the consequences of high-risk loans that are linked to mortgages and commercial property value. You should recall that in 2009 a total of 140 banks went bankrupt in the U.S. This is the highest number recorder since 1992.
Although the economy shows signs of improvement, the recovery in the banking industry tends to be slow compared to other areas. We expect to see the level of bankruptcies to continue to be high during the 2010, said recently Mitchell Glassman, head of the FDIC address which handles the process of closing the banks. According to the FDIC, the total cost of the bankruptcies of banks is expected to reach 100 billion dollars a year from 2009 to 2013.