Nine more banks failed and the pace of the closures appears to have quickened. The number of banks that would fail next year is more than four hundred if the current is maintained. Some analysts say that they expect more than 500 financial firms go under due to the recession.
The FDIC listed North Houston Bank, Houston, TX , Madisonville State Bank, Madisonville, TX, Citizens National Bank, Teague, TX , Park National Bank, Chicago, IL , Pacific National Bank, San Francisco, CA, California National Bank, Los Angeles, CA, San Diego National Bank, San Diego, CA Community Bank of Lemont, Lemont, IL and Bank USA, NA, Phoenix, AZ as those that went under.
The banks as of Sept. 30 had combined assets of $19.4 billion and deposits of $15.4 billion. The deposit insurance fund will take an estimated $2.5 billion loss, the FDIC said.
While the FDIC has recourse to the Treasury for funds, it has proposed that all insured banks pre-pay their fees through 2012 to raise $45 billion.
Douglas A. McIntyre
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