First Two Bank Failures Of 2011

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WASHINGTON – Regulators closed two failed banks Friday, the first such closures of the New Year, after 157 failures in 2010.

Friday’s failures were First Commercial Bank, a $600 million bank based in Boca Raton, Fla., and Legacy Bank, a $150 million Scottsdale, Ariz., institution.

The FDIC estimated the cost of the combined failures to the Deposit Insurance Fund to be $105.9 million.

The bank failures are the first of 2011. The number of banks that failed last year – 157 – was the highest since the savings-and-loan crisis ended in 1992, although the total assets at those fallen banks were much smaller than the year before. That’s because the trend has shifted to smaller banks that serve struggling local economies, from larger banks that took on too much housing risk.


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