A Minnesota bank was taken over by regulators on Friday, becoming the fourth bank to fail this year. According to the Associated Press :
“Federal regulators on Friday shut down a small Minnesota bank called First Integrity, saying unsafe practices had weakened its financial condition.
The Federal Deposit Insurance Corp. was appointed as receiver of First Integrity National Association of Staples, Minn., which had $54.7 million in assets and $50.3 million in deposits as of March 31.”
This week the FDIC issued a warning that US banks remained at risk, despite a mad rush to hoard reserves since last August. The New York Times reports :
“The Federal Deposit Insurance Corporation warned Thursday that the nation’s ailing banking industry was likely to weaken further.
The F.D.I.C. said the combined profit of the financial institutions it regulates plunged 46 percent, to $19.3 billion, during the first three months of the year.
During that time, banks and savings institutions set aside more money to cover future losses than in any quarter in the last 20 years, the regulator said. Reserves totaled $37.1 billion — four times their level a year earlier.
Even so, the percentage of troubled loans covered by such reserves, a measure of the industry’s strength known as the coverage ratio, sank to its lowest level since 1993. The number of borrowers who fell behind on loan payments increased sharply during the quarter.”
Associated Press : Bank regulators shutter First Integrity bank
New York Times : Agency Sounds an Alarm on Banks’ Shaky Outlooks
![[del.icio.us]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/delicious.png)
![[Digg]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/digg.png)
![[Facebook]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/facebook.png)
![[MySpace]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/myspace.png)
![[Newsvine]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/newsvine.png)
![[Reddit]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/reddit.png)
![[Technorati]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/technorati.png)
![[Yahoo!]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/yahoo.png)
![[Email]](http://redstateupdate.net/bankrunblog/wp-content/plugins/bookmarkify/email.png)