Bank failure is 83rdin '10; pace more
than double last year's
Posted 18h 14m ago
WASHINGTON (AP) — Regulators on Friday shut
down a Nevada bank, raising to 83 the number of U.
S. bank failures this year.
The 83 closures so far this year is more than double
the pace set in all of 2009, which was itself a brisk
year for shutdowns. By this time last year, regulators
had closed 40 banks. The pace has accelerated as
banks' losses mount on loans made for commercial
property and development.
The Federal Deposit Insurance Corp. took over
Nevada Security Bank, based in Reno, with $480.3
million in assets and $479.8 million in deposits.
Umpqua Bank, based in Roseburg, Ore., agreed to
assume the assets and deposits of the failed bank.
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The failure of Nevada Security Bank is expected to
cost the deposit insurance fund $80.9 million.
In addition, the FDIC and Umpqua Bank agreed to
share losses on $368.2 million of Nevada Security
Bank's loans and other assets.
The number of bank failures is expected to peak this
year and be slightly higher than the 140 that fell in
2009. That was the highest annual tally since 1992,
at the height of the savings and loan crisis. The
2009 failures cost the insurance fund more than
$30 billion. Twenty-five banks failed in 2008, the
year the financial crisis struck with force, and only
three succumbed in 2007.
As losses have mounted on loans made for
commercial property and development, the growing
bank failures have sapped billions of dollars out of
the deposit insurance fund. It fell into the red last
year, and its deficit stood at $20.7 billion as of
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