Washington: Bank regulators closed American Sterling Bank on Friday, the 24th US bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.
|
Also
see
|
|||||||||
|
The Federal Deposit Insurance Corp said Missouri-based American Sterling had $181 million in assets and $171.9 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $42 million.
The Missouri offices of American Sterling will reopen on Saturday, and the offices in California and Arizona will reopen on Monday as branches of Metcalf Bank, which is assuming all the deposits of American Sterling.
Customers can access their money over the weekend by check, teller machine or debit card, the FDIC said.
In 2008, 25 US banks were seized by officials, up from only 3 in 2007.
During the current financial crisis, Seattle-based lender Washington Mutual became the biggest bank to fail in US history. It was closed in September while suffering from losses from soured mortgages and liquidity problems.
The FDIC will insure up to $250,000 per account through 2009 and in individual retirement accounts at insured banks.
The agency also has a running tally of problem banks that its examiners closely monitor. At the end of the fourth quarter, 252 undisclosed institutions were on that list.
