Another set of regional banks in three US states joined the still-growing number of failed banks, says the Federal Deposit Insurance Corp bringing the year’s total tally to 133.
Republic Federal Bank in Florida, SolutionsBank in Kansas, and Valley Capital Bank in Arizona were closed by the Office of the Comptroller of Currency and by state regulators.
Customers of these failed banks are all protected and other banks were able to buy the banks. Branches are expected to reopen as branches of controlling banks. The FDIC covers deposits of up to $250,000 per depositor.
2009 saw an average of 11 banks a month and it’s the first time the FDIC has gotten in the red since 1992. The FDIC expects to be in the black again by 2012.
