Regulators have seized seven U.S. banks. This has brought this year’s total of failed lenders to 140. The Federal Deposit Insurance Corp. excepts more shutdowns.
The FDIC said in statements on its Web site that Yesterday in six U.S. states banks having $14.4 billion in total assets were closed.
Two banks were closed in California. OneWest Bank has bought the assets and deposits of Federal Bank of California in Santa Monica. City National Corp. has bought the Imperial Capital Bank.
On Wednesday it has been announced by Bank of America that it will pay back the $45 billion it received from the Troubled Assets Relief Program, or TARP.
In response to the positive news from America’s largest bank both the U.S. dollar and euro has shown a rise.
The announcement has highlighted the speedy recovery of U.S. banks that received bailout funds.
According to a Treasury Department report, the largest U.S. banks have found it more difficult to meet demand for loan modifications than their smaller rivals. As stated by a U.S. Treasury official, the pace and effectiveness of the government’s anti-foreclosure programs has been limited by the inability of some mortgage servicers to keep up with demand.
David Sisko, the head of default management services for Deloitte & Touche LLP said that the Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. are likely to show the poorest levels of homeowner assistance among the 31 companies participating in President Barack Obama’s $75 billion loan modification program. The government said it wants to clearly show the companies that are doing the most to help.
