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US sees 17 bank failures in 2009

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Press Trust of India New York
Last Updated : Jan 20 2013 | 7:34 PM IST

The number of US bank failures is mounting with each week passing by as 17 lenders went belly up so far this year amid the deepening recession in the world's largest economy.

With the collapse of Freedom Bank of Georgia this month, a staggering 69 banks have collapsed since 2000.

In the first two months of this year, a stunning 16 banks went belly up -- which is more than half the total number of such failures in 2008. Last year, 25 banks were closed down by the American authorities.

The Federal Deposit Insurance Corporation, which is often appointed as the receiver for failed banks, said the Freedom Bank of Georgia was shut down on March 6.

Freedom Bank of Georgia had assets to the tune of $173 million and deposits worth $161 million as on March 4, 2009.

In February, 10 banks were closed down, making it the highest for any month since 2000. A total of six banks had failed in January.

Majority of the bank failures happened last year after the financial turmoil turned worse with the bankruptcy of investment banking entity Lehman Brothers in September.

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First Published: Mar 08 2009 | 5:43 PM IST

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