Experts seek strong backing for FDIC as bank failure toll touches 53

In order to take care of high rate of bank failures, the Federal Deposit Insurance Corp (FDIC) may need string financial institutions to assume the assets and liabilities of collapsed lenders, say experts.

With the failure of the Bank of Wyoming in Thermopolis with $70 million of assets and $67 million of deposits, the toll has reached 53. Central Bank & Trust in Lander will buy all of Bank of Wyoming's deposits except for $8 million in brokered deposits, and has agreed to purchase about $55 million of assets.

Bank of Wyoming, the state's first failed bank since 1991, will open as a branch of Central Bank ''during normal business hours,'' the FDIC said.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $27 million.

The fund, derived from premium payments made by bank and thrift institutions, fell to $13 billion in the first quarter, the lowest since September 1993. 

The FDIC recently recognised the importance of proven management when proposing requirements for non-banks wanting to buy banks.