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US bank failures reach 94 in 2009: FDIC

Last Updated: Saturday, September 19, 2009 - 15:27

Washington: Two more US banks have
closed down -- including the sixth largest bank bankruptcy
this year -- to bring the total number of bank failures this
year to 94, according to the government banking insurer.

The Indiana-based Irwin Union Bank was shuttered with
a total of USD 2.7 billion in assets and total deposits of
some USD 2.1 billion, the Federal Deposit Insurance
Corporation (FDIC) said in a statement yesterday.

In the same group, the Kentucky-based Irwin Union Bank
failed with assets of USD 493 million and total deposits of
some USD 441 million.

The institutions were banking subsidiaries of the
Columbus, Indiana-based Irwin Financial Corporation.

With 27 branch locations between them, the two banks
are set to reopen under regular business hours today as
branches of First Financial Bank, with deposits continuing to
be insured by the FDIC.

After suffering no bank failures at all in 2005 and
2006, the US banking system saw three banks going under in
2007, followed by 25 in 2008.

With the bankruptcies yesterday, the institutions
brought the number of bank failures this year to 94 --
highlighting the extreme stress that the global financial
crisis has placed on US banking institutions.

The FDIC said it estimated the transactions would cost
the government`s Deposit Insurance Fund USD 850 million.

Bureau Report

First Published: Saturday, September 19, 2009 - 15:27
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