Banks Shut Down in Nevada and Illinois | Total Closures This Year 16

Nevada Security Savings Bank shuttered

Only two months into the year, already 16 banks in the United States have been shut down. Nevada Security Savings Bank closed its doors Friday.

Regualtors shut down the bank and turned deposits over to Bank of Nevada, based in Las Vegas. Security Savings Bank had $175.2 million in deposits as of Dec. 31, the FDIC said.

Ailing in Illinois

Since the credit crisis began, a total of 41 banks in the U.S. have been shut down. Another bank closed down along with Nevada Security Savings Bank on Friday. Heritage Community Bank of Glenwood, Ill., also shut its doors Friday. Illinois banking regulators shut down the operation and turned it over to the FDIC.

The FDIC says Chiccago bank MB Financial has agreed to purchase the bank’s assets at a discount and take over deposits.

An interesting contrast

Many small banks that didn’t recieve federal aid have already shut down. However, it appears that some other banks that were in no danger of failing at all have gotten bailout money from TARP funds.

Louisiana bank IBERIA said Friday that it will give back the $90 million in federal aid it received because of new regulations that apply to banks that take TARP funds. Because the bank is doing well on its own and didn’t need the aid in the first place, it is returning the funds so it can resume business as usual.

Eventful spending

Another bank has also made it clear that it did not need the federal aid it took. Northern Trust banks threw a lavish party last weekend in Los Angeles. I had previously accepted $1.6 billion in federal aid. Congress angrily demanded that the bank repay the money it had spent on the party, which included a golf tournament, performamces by high-profile musicians and Tiffany gift bags. ... click here to read the rest of the article titled "Banks Shut Down in Nevada and Illinois | Total Closures This Year 16"