US witnesses 20 bank failures in less than 3 months
The deepening recession has now claimed as many as 20 US bank so far in this current financial year. The ongoing financial crisis has been termed as the worst fiscal crisis for America since the World War II, termed as The Great Depression of 1930s.
The first two months of the year 2009 saw as many as 16 banks crashing. The figure was more than half the total number of such failures in the year 2008. During the last year 25 banks were closed by the US authorities.
Freedom Bank of Georgia had collapsed on March 6. According to the Federal Deposit Insurance Corporation, often appointed as the receiver for failed banks, TeamBank, Colorado National Bank and FirstCity Bank were shut on March 20. This took the toll to 20 this year.
In all, 72 banks have collapsed since the year 2000. Majority of these bank failures have happened in the last year after the financial situation worsened with the bankruptcy of Lehman Brothers in September.
