March 21, 2009

Banks Fail in Kansas, Colorado & Georgia; 20 so far this year

March 20 (Bloomberg) -- Banks in Kansas, Colorado and Georgia were seized, bringing this year’s tally of failed U.S. lenders to 20, as foreclosures surged amid a recession and the highest unemployment in a quarter century.

The deposits of TeamBank in Paola, Kansas, will be passed to Great Southern Bank in Springfield, Missouri. Herring Bank in Amarillo, Texas, is assuming the deposits of Colorado National Bank in Colorado Springs. Regulators were unable to find a bidder for FirstCity Bank of Stockbridge, Georgia, and the FDIC will send payments to insured depositors beginning on May 23.

The U.S. economy has shed 4.4 million jobs since the recession began in December 2007. Unemployment jumped to 8.1 percent in February, the highest in more than 25 years.

Details Here