10 Bank Closures that Changed US Economy
The calendar year 2009 was a record one in many ways. Not the least of these is the fact that 89 banks actually closed, were forced to close or merged and were absorbed by another entity. These banks used poor judgement and the money that they wasted caused a huge dent in the economy and consumer confidence. Hundreds more institutions are expected to fail over the next few years due to the real estate crisis.
The state of Georgia in and around the city of Atlanta and the suburbs thereof was served well by Security Bank. They served many counties in the area and held a lot of mortgages for people in and around the area. Unfortunately the foreclosure crisis escalated and banks closed leaving many people hurt by it.
Wachovia is also another player that ran into financial issues. Fortunately they were Absorbed and taken over by Wells Fargo bank with little to no problems or inconvenience to its customers.
Vantus Bank in Iowa recently closed. It had a total of $458 Million Dollars in assets and $368 Million Dollars in deposits when it folded.
With Platinum Community Bank, the government had no luck in the search to find another entity that could someone that could handle anything from either the deposits or the affiliation of the branches of the bank so the FDIC was responsible for handling the payouts to the customers.
Banks such as the small one building First Kansas Bank of Kansas City was taken over by the Great American Bank in Kansas, mostly due to bad mortgages.
More Georgia banks such as First Piedmont Bank in Winder have closed because of too much outstanding mortgage loans.
Mortgage problems with loans are also the primary reason for closure of the First National Bank of Nevada located in Reno. The real estate market in Nevada is terrible.
The Community Bank of Arizona was forced to close its doors due to having no liquidity because of too much outstanding capitol in mortgage loans.
To show that the economy shows no favorites, the First Bank of Beverly Hills closed by the FDIC with the problems brought on by the recent real estate problems.
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