Page last updated at 08:55 GMT, Sunday, 20 September 2009 09:55 UK

Number of failed US banks hits 94

Dollar bills
The banking regulator says it has enough money to cover all failed banks

Another two US banks have been closed by the federal regulator, taking the total number of American banking failures this year to 94.

The Federal Deposit Insurance Corporation (FDIC), which controls the banking sector, has shut Irwin Union Bank & Trust and Irwin Union Bank.

The move comes after their parent firm - Irwin Financial - was unable to meet an FDIC demand to boost their capital.

The failure of the two banks is likely to cost the FDIC $850m (£522m).

This will come from the regulator's banking failure insurance fund, which has fallen this year from $45bn to $10.4bn, due to the number of banks that have failed.

However, while some analysts have questioned whether the FDIC will need to press for more funds from the government, the regulator says its insurance scheme has $42bn in reserves to handle failures over the next year.

The accounts held by Kentucky-based Irwin Union Bank and Indiana-based Irwin Union Bank & Trust are being taken on by rival First Financial Bank.

The FDIC insures each bank account at a failed bank up to $250,000.

Print Sponsor

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific