WASHINGTON (AP) - Regulators have shut down six more banks, bringing to 130 the number of U.S. banks to be brought down so far in 2009 by recession and mountains of bad debt.
The Federal Deposit Insurance Corp. on Friday took over Ohio's AmTrust Bank, the fourth-largest bank to fail this year, with about $12 billion in assets and $8 billion in deposits. The Cleveland-based bank's failure is expected to cost the federal deposit insurance fund an estimated $2 billion.
About a year ago, the federal Office of Thrift Supervision put restrictions on AmTrust because of concern that its reserves against losses were dangerously low. The regulators told the bank to limit new loans for land acquisition, development or speculative residential construction.
In addition to its branches in Ohio, AmTrust - formerly Ohio Savings - had branches in Florida and the Phoenix area.