Two more US banks fail; year's tally reaches 25

18 April 2009

The Federal Deposit Insurance Corporation (FDIC) has closed two more US banks, taking the number of failures so far this year to 25. This is equal to the number of failed banks for the whole of 2008.

The latest failures are Great Basin Bank of Nevada and American Sterling Bank in Missouri. The Federal Deposit Insurance Corporation said it will continue to insure deposits of the two banks. FDIC gives insurance cover to regular deposit accounts of up to $250,000.
 
All deposit accounts of Great Basin Bank have been transferred to Nevada State Bank, Las Vegas, NV (assuming institution) and will be available immediately.  On Monday, 20 April 2009, the former Great Basin Bank of Nevada locations will reopen as branches of Nevada State Bank,'' FDIC said in the release.

In the case of American Sterling Bank, all deposits have been transferred to Metcalf Bank, Lee's Summit, MO (assuming institution) and will be available immediately. On Saturday 18 April 2009, the former Missouri offices of American Sterling Bank will reopen as branches of Metcalf Bank. On Monday 20 April 2009, the former California and Arizona offices of American Sterling Bank will reopen as branches of Metcalf Bank, the release added.

All transferred deposits will be separately insured from any accounts the depositor may already have at the assuming banks for six months after the failure of the banks, ie, till 18 October 2009.

Cheques drawn on Great Basin Bank of Nevada and American Sterling Bank that did not clear before the institutions closed will be honored as long as there are sufficient funds in the accounts.

Depositors have been asked to contact an FDIC representative regarding deposit insurance by at: 1-866-782-1969 or visit EDIE the FDIC's Electronic Deposit Insurance Estimator.