FDIC Seizes 6 Banks, for Total of 34 This Year

But the pace is down from last year
By John Johnson,  Newser Staff
Posted Apr 16, 2011 9:49 AM CDT
FDIC Closes 6 More Banks, Including Superior in Alabama
File photo: Regulators stand by a sign posted on the front door of Broadway Bank in Chicago last year, after it was seized by regulators.   (Getty Images)

The pace is slowing, but bank failures continue to ripple throughout the industry. The FDIC seized six yesterday, the most in a single day this year, reports AP. That makes a total of 34 in 2011, compared to 50 at this point last year. The new banks seized were in Alabama, Georgia, Minnesota, and Mississippi, with the biggest by far Birmingham's Superior Bank ($3 billion in assets and about 70 branches), notes the Wall Street Journal.

Other odds and ends from the wire services:

  • Georgia banks continue to struggle: Sixteen were shut down last year, and yesterday's two closures bring this year's total to eight.
  • Yesterday's seizures will cost the Desposit Insurance Fund $588.1 million.
  • The trend: Three banks were seized in 2007, 25 in 2008, 140 in 2009, 157 in 2010. The 2009 seizures cost the insurance fund $36 billion, more than last year's $21 billion because those 2009 banks were bigger.
(More banking industry stories.)

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