Seven U.S. banks were closed…

Financial regulators in seven U.S. banks closed on Thursday, including six family banks based in the state Illinois, and one of Dallas, reported Reuters. Thus the total number of banks have closed 52 of the beginning of this year.
Of all seven largest banks is Founders Bank, which has assets of nearly 963 million dollars. Of these 849 million are deposits. It will be acquired by Chicago-based PrivateBank and Trust.
Failure of the Founders Bank will cost of Federal deposit insurance corporation in about 188.5 million dollars.
Six of the bankrupt banks are controlled by the same family and had a similar business model. Their losses were generated primarily from investments in collateralised debt securities such as mortgage bonds.
Federal deposit insurance corporation as recommended in another bank – City Bank of Washington to adjust its management policy, which threatens the deposits of depositors.
Federal deposit insurance corporation in guaranteeing deposits of up to 250 thousand dollars to depositors at banks that are its members. Financial regulatory authority monitors the activities of the 305 problem banks at the end of the first quarter.

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Finance