The number of American banks are falling by the day, with a total of 41 entities biting the dust in the first three months of 2010.

In March alone, 19 banks have been shut down.

According to the Federal Deposit Insurance Corporation (FDIC), which insures deposits at over 8,000 banks, four entities were closed down by the authorities on March 26.

The failure of the four - McIntosh Commercial Bank, Unity National Bank, Desert Hills Bank and Key West Bank - would cost the Federal agency as much as USD 320 million.

Despite the national economy returning into the growth path, many of the small and medium banks continue to remain shaky due to high unemployment levels.

With jobless rate hovering over nine per cent, these entities are also witnessing increased defaults.

On March 19, seven banks had collapsed. Last month, seven banks failed while the count stood at 15 in January.

A staggering 195 banks have gone bust since the bankruptcy of Lehman Brothers in September 2008 that worsened the financial meltdown.

Meanwhile, the US economy grew 5.6 per cent in the last three months of 2009.


U.S. Treasury seeks to offload Citi stake March 30, 2010

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