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Three US banks, two in California and one in Georgia, were seized by regulators at the weekend, bringing this year's tally of closings to nine as a recession and record foreclosures extend the biggest financial crisis in more than 70 years.
County Bank of Merced, California, with deposits of US$1.3 billion ($2.45 billion) and assets of US$1.7 billion, was shut by the state's Department of Financial Institutions.
Westamerica Bancorporation, holding company for Westamerica Bank, acquired all the assets and deposits.
The Georgia Department of Banking and Finance closed FirstBank Financial Services, which had US$337 million in assets and US$279 million in deposits.
And the California Department of Financial Institutions shut Alliance Bank, with assets of US$1.14 billion and US$951 million in deposits.
Regulators seized six banks in January - the largest monthly toll since 1993 - including Salt Lake City-based MagnetBank, and 25 banks last year, matching the total for 2001 through 2007.
The Federal Deposit Insurance Corporation (FDIC), other US bank regulators and Congress are taking steps to help banks avoid losses as the Barack Administration readies a stimulus package that may include guarantees for toxic assets.
Legislation that would more than double deposit insurance coverage and offer safeguards for banks is being considered by Congress. The House Financial Services Committee unanimously approved a measure that would raise coverage to US$250,000 per depositor per bank, from US$100,000.
The FDIC said industry earnings fell 94 per cent to US$1.73 billion from the previous year.
- BLOOMBERG
