With Failure of Missouri Bank, U.S. One Failure Away from 2008 Tally
The twenty-fourth U.S. bank failure of 2009 occurred this evening when the American Sterling Bank, Sugar Creek, Missouri was seized by federal regulators.
Metcalf Bank of Lee’s Summit, Missouri will assume the deposits and former American Sterling offices will begin reopening on Saturday as Metcalf Bank branches.
According to a press release by the Federal Deposit Insurance Corp., the government agency which insures depositors for up to $250,000 and regulates member institutions, the Metcalf Bank acquisition of American Sterling was the least cost option. The estimated cost to the FDIC’s Deposit Insurance Fund is $42 million.
In 2008, the number of failed U.S. banks hit 25, the highest number in any year since the Failed Bank List began to be posted on the Internet. Since the current recession began, 49 banks have failed. Sixty-four percent of banks which have failed since October 2000 have failed during this recession.