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Friday, April 30, 2010

A trio of bank failures in Puerto Rico and three more closures in Michigan and Missouri raises the number of U.S. bank failures this year to 63

(MarketWatch) -- A trio of bank failures in Puerto Rico and three more closures in Michigan and Missouri took a nearly $6 billion bite out of the federal deposit-insurance fund on Friday, while raising the number of U.S. bank failures this year to 63.

The Federal Deposit Insurance Corp. said Puerto Rico's Westernbank, Eurobank and R-G Premier Bank of Puerto Rico were all closed, with a combined $14.84 billion in deposits.

Their closure will cost the deposit-insurance fund roughly $5.28 billion, the regulator said.

According to a report in The Wall Street Journal, the FDIC hasn't grappled with such a significant problem in a single banking market since the savings and loan crisis of the 1990s.

Later in the day, the FDIC announced the closure of CF Bancorp. in Port Huron, Mich. The Michigan bank had $1.43 billion in deposits as of Dec. 31.

Two Missouri institutions, Creve Coeur-based Champion Bank and Butler-based BC National Banks, also were closed.

Champion Bank had $153.8 million in deposits as of Dec. 31, while BC National Banks had $54.9 million in deposits, according to the FDIC.

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