Even though the global economy is said to be on the recovery path, 37 American banks shut their door in 2010, an average of 12 entities going bust every month.
It is witnessed that high unemployment levels are resulting in increased defaults, in turn severely hitting the small and medium banks. The seven banks that collapsed on March 19, 2010 are State Bank of Aurora, First Lowndes Bank, Bank of Hiawassee, Appalachian Community Bank, Advanta Bank Corp, Century Security Bank and American National Bank.
According to Federal Deposit Insurance, the failure of seven banks would cost the agency as much as $1.28 billion. The FDIC insures deposits at more than 8,000 banks and also acts as a caretaker of failed entities. Indicating the severity of the financial crisis, a whopping 191 banks have been closed down by the authorities since the fall of Wall Street major Lehman Brothers in September 2008.
