MercoPress. South Atlantic News Agency

Biggest bank failure in the US; 77 so far this year

Colonial Bank has assets worth 25 billion USD

The United States has seen the biggest bank failure of 2009 with Colonial Bank, which had assets worth 25 billion US dollars as on June 30, closing operations last week after hit by the financial turmoil.

In just eight months this year, 77 banks have gone out of business against 25 bank failures last year.

The authorities on August 14 closed down five banks -- Colonial Bank; Dwelling House Savings and Loan Association; Union Bank, National Association; Community Bank of Arizona and Community Bank of Nevada.

As per the Federal Deposit Insurance Corporation (FDIC), which is often appointed as the caretaker of failed entities, the collapse of these five banks would cost the agency a staggering 3.68 billion USD.

The failure of Colonial Bank would cost the regulator as much as 2.8 billion. The entity has 346 branches in Alabama, Florida, Georgia, Nevada and Texas.

“As of June 30, 2009, Colonial Bank had total assets of 25 billion and total deposits of approximately 20 billion. BB&T will purchase approximately 22 billion in assets of Colonial Bank,” FDIC said in a statement.

Colonial Bank Group is a property lender based in Montgomery, Alabama.