32 Banks closed in 2009

Economic downturn is at its peak in United states compare to other countries of the world.Banks in US are filing for bankruptcy every alternate day due to huge amount of losses incurred.Although Large and Multi-national banks are breathing a new life with the fresh capital provided by federal government,small & medium sized banks are facing the wrath of recession.Since the inception of 2009,32 banks have been closed.



The latest to join the growing list of failing banks were Silverton bank,Citizens Community bank and America West bank.Although these banks had huge asset value,the increase in debt position forced filing for bankruptcy.For example,Silverton bank had properties,assets valued at 4.1 billion dollars & deposits worth over 3.3 million dollars.But,since the bank had huge outstanding debts,loans and charge-offs,the regulators closed the bank on May 1st 2009.



The total number of banks in US that were closed since 2008 stands at 57 & top officials fear this number to rise as months move ahead with the recession expected to get deeper.Although banks in India and banking industry are insulated from the American crisis,the Reserve bank of India (RBI),is keeping a close watch on all banks