Tuesday, July 7, 2009 7:34 AM
Another day, another 7 U.S. bank failures
Andrew Willis
Monday was a day of pain in U.S. banking, as seven financial institutions closed their doors, the largest number of bank failures in a single day since this credit crisis began.
The numbers are distorted by the fact that six of the seven banks that went bust were owned by the same family in Illinois. All of these institutions tied up far too much of their assets in collateralized debt obligations, or CDOs, according to a report late Monday from TD Waterhouse .
However, banks are continuing to stumble, with a total of 52 failures so far this year. That’s another sign that this financial system still has problems, and monetary and fiscal fixes have not fully taken hold.
That TD Waterhouse report also highlighted the fact that Cattles Plc, a British sub-prime lender, said it will default on a bond interest payment due on July 5.
The U.S. institutions that failed were Founders Bank (Worth, IL), The First National Bank of Danville (Danville, IL), The Elizabeth State Bank (Elizabeth, IL), Rock River Bank (Oregon, IL), The First State Bank of Winchester (Winchester, IL), The John Warner Bank (Clinton, IL) and the Millennium State Bank of Texas (Dallas, TX).
