US Regulators Shut Down Banks In Washington, Georgia
At least two small banks in Georgia and Washington D.C. were shut down by US regulators, bringing the total number of foreclosed banks for this year to 43.
The banks have a total of 26 branches.
United States regulators shut down two small banks in Georgia and another in Washington D.C. after failing to continue operations due to the impact it sustained from the worst economic recession.
The new wave of bank foreclosure has brought the number of banks closed down by the government this year to a total of 43.
The Georgia banks were brought by CertusBank, a subsidiary of Blue Ridge Holdings Inc. – a company led by former executives of the Bank of American Corp. and Wachovia Corp., who want to build its line of regional bank in the Southeastern United States.
Under the deal, Blue Ridge would take over the operations of the Atlantic Southern Bank of Macon and First Georgia Banking Company of Franklin, which has an asset of $741.9 million and $731 million, respectively.
The two Georgia banks have a total of 26 branches, which will resume operations on Saturday under the management of CertusBank.
Meanwhile, Washington-based Columbia State Bank has purchased the Summit Bank, which has three branches and a total asset of $142.7 million.
In 2009, regulators have closed down some 140 banks, while another 157 financial institutions were shut down the following year.
Majority of the bank failures came from smaller financial institutions, or those with less than $1 billion in assets. Meanwhile, foreclosures in large banks become less due to its financial capability that has propelled them past the recession.