As the financial woes mount in the world’s largest economy, the number of failed American banks are climbing, with eight entities going belly up in February alone.
Pushing the total bank failures this year to 14, another entity — Silver Falls Bank, Silverton — has been shut down by the authorities.
In February, the country has witnessed the collapse of eight banks, which is the highest for any month since 2000. The entire January saw failure of six such entities.
The Federal Deposit Insurance Corporation which is often appointed as the receiver for failed banks, shut down Silver Falls Bank on February 20.
The bank had total assets worth $131.4 million and deposits worth $116.3 million as on February 9.
A staggering 14 banks have gone belly up so far in 2009 while just 25 such entities were shut down last year.
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In a reflection of the deepening economic recession, a stunning four banks were closed down on February 13. The failed entities on that day were Pinnacle Bank of Oregon, Corn Belt Bank and Trust Company, Riverside Bank of the Gulf Coast and Sherman County Bank.
Last year, an average of two banks collapsed every month and the majority failed after the ongoing financial crisis turned acute with the bankruptcy of Lehman Brothers in September.
Prior to February this year, the largest number of bank failures took place in 2002, when 11 entities went belly up.
Even as the President Barack Obama has come up with a mammoth $787-billion stimulus package, the country’s financial sector continues to remain fragile. There are rising concerns about the health of Citigroup and Bank of America and even possible nationalisation of the two entities.
Among the bank failures in 2008, the most notable was the folding up of Washington Mutual, then the country’s largest savings and loan entity.
Other entities that collapsed this year include Alliance Bank, National Bank of Commerce, 1st Centennial Bank and Magnet Bank.