Five Banks Shut Down In Four American States

The U.S. regulators have reportedly shut down five banks in Florida, Oregon, Washington, and Georgia. As a result, the FDIC witnessed a loss of $334.7 million. The fragile economy in the U.S. has hit the banking industry severely.

In a statement on the Federal Deposit Insurance Corp.’s website, Home Bancshares has declared that this year it gained around $415 million in deposits and the 13 branches, which it purchased.

Home Bancshares Inc. is an Arkansas bank, which has acquired the failed Florida banks this year.

Chief Executive Officer of Home BancShares, C. Randall Sims, disclosed that the purchase is remarkable as the bank made the most of the opportunity. He disclosed that the acquisition would be instrumental in the expansion of the bank in Florida.

The regulators have disclosed that the closure of the banks have taken the figure for the year 2010 to 108.This year the closures of the banks has been higher than that of the previous year.

Last year at this time, only 69 banks were shut down.

Experts reveal that Florida is witnessing the highest impact of recession. Up till now, the Government has reportedly shut down 20 banks in the state.

Economists reveal that the financial situation is worsening in the wake of souring housing and commercial loans.