US authorities close three banks

12 July 2011

Three banks have been closed by authorities in the US - action that means 51 foreclosures have taken place in the country this year.

The Federal Deposit Insurance Corporation - which was created in 1933 in response to bank failures during the Great Depression - confirmed First Chicago Bank and Trust, Colorado Capital Bank and Signature Bank have shut their doors, Reuters reports.

Northbrook Bank and Trust Company is to assume all of the deposits of First Chicago's seven branches, which had slightly under $960 million in total assets.

Deposits at Colorado Capital bank are to be taken up by First-Citizens Bank and Trust Company, while those of Signature Bank are being gathered by Points West Community Bank.

The lender failures for this year, however, appear to be slowing and it is expected numbers will not be as high as seen in the last two years - 140 banks failed in 2009 and 157 followed suit in 2010.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development