WASHINGTON – Regulators on Friday shut banks in Georgia, Michigan, Minnesota, Missouri, and California, bringing the number of bank failures this year to 120 amid the struggling economy and a cascade of defaults on loans.
The FDIC took over United Commercial Bank in San Francisco, with $11.2 billion in assets; United Security Bank, in Sparta, Ga., with $157 million; Home Federal Savings Bank in Detroit, with $14.9 million; Prosperan Bank, in Oakdale, Minn., with $199.5 million; and Gateway Bank in St. Louis, with $27.7 million.
The 120 bank failures are the most in a year since 1992 at the height of the savings-and-loan crisis. They have cost the federal deposit insurance fund more than $27 billion so far this year, and hundreds more bank failures are expected to raise the cost to around $100 billion through 2013.
