Business Digest

Business Digest

Saturday, April 11, 2009


Regulators Close N.C., Colo. Banks

Federal regulators shut down two more banks yesterday, raising the number of bank failures so far this year to 23.

The first bank was Cape Fear Bank in Wilmington, N.C., the first North Carolina bank to fail in nearly 16 years. The other bank was New Frontier Bank of Greeley, Colo., the second Colorado bank this year to collapse. The Federal Deposit Insurance Corp. took over both banks after their respective state regulators closed them down. New Frontier Bank has $2 billion in assets and $1.5 billion in deposits. Cape Fear Bank has $403 million in deposits and $492 million in assets.

The agency estimated that the two closures would reduce the federal deposit insurance fund by $801 million. This year's tally of 23 bank failures is nearing the total for all of 2008, when 25 U.S. banks were seized by regulators.

-- Associated Press

N.J. Bank Repays Bailout Money

A New Jersey bank has become the sixth bank to repay emergency assistance from the federal government. The Treasury Department said that Sun Bancorp of Vineland repaid $89.3 million, money it originally received on Jan. 9. The move followed similar actions by five banks earlier this month. The government invested nearly $200 billion in hundreds of banks as part of a $700 billion financial rescue that Congress passed last fall.

-- Associated Press


OTS Taps Chief For Major Bank Unit

The Office of Thrift Supervision promoted Thomas Barnes to assistant deputy director and said he will run a new division created to monitor lenders with more than $10 billion in assets. Barnes, the Central Region director in Chicago, starts April 27, OTS said.

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