Bank Failures in 2009 Up to 84
August 28, 2009 by Stephen Kersey
Filed under Business
Three more banks failed on Friday, which means that there have now been 84 bank failures in 2009. Federal regulators shut down banks in the states of Minnesota, Maryland and California.
Mainstreet Bank was the bank in Minnesota that was shut down. Bradford Bank failed in Maryland, while Affinity Bank was the Californian bank that went belly up. Of the three banks, Affinity Bank was easily the largest.
Affinity Bank was assumed by Pacific Western Bank. While two of the Affinity Bank branches will reopen on Saturday under the new bank’s name, the vast majority of the changed branches will open their doors on Monday.
Bradford Bank branches will become Manufacturers and Traders Trust Co. branches, while Central Bank is assuming the assets and deposits of Mainstreet Bank.
Within the next few years, as many as 200 or even 300 banks could fail around the United States. If that happens, the FDIC’s funds may run dry. In that scenario, the insurer would likely have to borrow money from the federal government.
FDIC (Image: Flickr)
