Four US banks closed by regulators

Four US banks closed by regulators. Banks in the US being monitored since the recession. A mere breaking of rules can lead to action by regulators. And that is what happened to some banks in Maryland, Illinois, Florida and Utah. They were shut down, meaning that this year itself some 26 banks have been closed.

Besides, this has put more pressure on the Federal Deposit Insurance Corp. Many economists in the US have been demanding more regulation on the banking system.

Growing toxic assets are a big problem for regulators. They have been debating how to combat it. However, now the problem being faced by the FDIC is that they have failed to convince anybody to buy these two banks: Centennial Bank in Ogden, Utah, and Waterfield Bank of Germantown, Maryland.

This has been confirmed by the agency. News regarding this was found posted on its Web site. First-Citizens Bank & Trust Co has bought the assets of Boca Raton, Florida-based Sun American Bank. “South Florida is a great market for our company, especially with our focus on individuals, small- to mid-sized businesses and the medical community,” Frank B. Holding Jr., chief executive officer of First-Citizens, said in a statement. There are worries that this would discourage lenders from putting in their money.