Regulator seizes more banks

Regulator seizes more banksThe US regulator has seized three more banks in the areas of Nebraska, Mississippi and Illinois.

All the three have total deposits of close to $2.3 billion and were seized because of the stemming losses that these were suffering from. With this, the total number of collapsed US lenders has gone up to 81.

All the three lenders in questions had a large chunk of their debts in form of real-estate loans.

The announcement was made by the Federal Deposit Insurance Corp. which said in its official statement that the failures till now have drained away $313.6 million from its own corpus, known as the FDIC's deposit-insurance fund.

It must be kept in mind that this is the fastest speed in which the regulator is closing banks ever since 1990s.

Talking to the media, FDIC chairman Sheila Bair said that the regulator has already made a list of 775 banks which had $413 billion as assets in the first quarter. Earlier it was 702 banks with $402.8 billion during the fourth quarter of last year.

Name of the two biggest banks sized are TierOne Bank, Great Western Bank of Sioux Falls.