Local and regional banks continue to tread on thin ice. Two more banks – Irwin Finanical’s Irwin Union Bank a& Trust and Irwin Union Bank – have been closed by the FDIC.
The FDIC made the decision after Irwin Financial failed the FDIC’s requirement of more capital. The closure is expected to set the FDIC’s insurance fun back by $850 million.
So far, it has doled out almost $35 billion for bank failures this year shrinking the insurance fund to a mere $10.4 billion from $45 billion.
This raises concern on whether or not the FDIC would need to ask more funding from the government to continue providing insurance. The FDIC, however, claims that it has enough in reserves to deal with future closures.
Source: BBC
