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Monday, May 4, 2009

32 US banks collapse so far; three more fail in one day

New York (PTI): Starting the month on a sour note, three more American lenders have been closed down, making it an average of six bank failures every month in 2009.

A staggering 32 banks have gone belly up so far this year, a toll much higher than 25 collapses for the whole of 2008.

The latest to join the league of failures are Silverton Bank, Citizens Community Bank and America West Bank.

According to the Federal Deposit Insurance Corporation, which is often appointed as the receiver for failed banks, all the three entities were shut down on May 1.

At the time of closing, Silverton Bank had assets worth USD 4.1 billion and deposits to the tune of USD 3.3 billion.

A total of 46 banks have collapsed since September 2008 when the current financial crisis turned severe, following the bankruptcy of Wall Street titan Lehman Brothers.

US banks especially the smaller ones are being shuttered almost every week in 2009, as the world's largest economy continues to contract at a rapid pace.

In another reminder of the grim economic scenario, a stunning 57 banks have failed since the start of January 2008.

Interestingly, the American economy officially slipped into recession in December 2007.

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