US bank insurer watching closely for failures

Albuquerque News.Net
Monday 28th July, 2008

The head of the U.S. Federal Deposit Insurance Corporation has said about 13 per cent of banks placed on a regulatory watch list have failed historically.

The agency closely monitors problem banks in the U.S.

90 U.S. banking institutions are currently on the list with seven banks already failing this year.

The latest examle, IndyMac, is third largest U.S. bank failure ever and had been on the FDIC’s watch list.

The FDIC overseas a reserve about US$53 billion, which insures depositors for up to US$250,000 per individual account.

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