Five More Banks Shut Down by the Feds
June 26, 2009 by Stephen Kersey
Filed under Business
For 2009, the number of failed banks jumped from 40 to 45 in one day on Friday. And according to many banking experts, many more banks will be shut down by the federal government before 2009 is in the books.
The five banks that were shut down are in the states of Georgia, California and Minnesota. Georgia and California both had two banks shut down.
The two in Georgia were Neighborhood Community Bank in the city of Newnan and Bank of West Georgia in the city of Villa Rica. The two in California were Irvine’s MetroPacific Bank and Los Angeles’ Mirae Bank. Minnesota’s failed bank was Horizon Bank in the town of Pine City.
Neighborhood Community Bank branches will be taken over by CharterBank. Community Bank of West Georgia branches will become Unity Community Bank branches. MetroPacific Bank branches will become Sunwest branches. Wilshire State Bank will take over Mirae Bank accounts. Horizon Bank branches will become Stearns Bank branches.
All told, the Federal Deposit Insurance Corporation estimates that the five banks failures will cost the federal fund about $265 million.
Banks going out of business (Image: Flickr)
