FDIC shuts down AmTrust Bank and 5 others to bring total to 130 in 2009

December 7, 2009 by · Leave a Comment
Filed under: Bank Failure 

Having AmTrust fail is pretty major being they had $12 billion in asset when the FDIC put them into receivership.   According to the AP release, AmTrust losses were connected to exposure to loans connected to land deals and construction developments.  FDIC has been telling Congress that its deposit insurance fund is dangerously low if not already negative.  This failure alone is going to cost the fund $2 billion dollars. According to the release, the FDIC still has $21 billion in a separate reserve fund and a $500 billion dollar credit line from the U.S. Treasury.

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