Daily Management Review

Fourth US bank goes bankrupt in 2019


The US authorities stopped the City National Bank of New Jersey, which became the fourth bank to be closed in the country since the beginning of this year, according to a press release from the American Deposit Insurance Corporation (FDIC).

Ivan Radic via flickr
Ivan Radic via flickr
Deposits of this bank will be transferred to Washington Industrial Bank by agreement with FDIC. The owners of deposits of a closed financial institution automatically become Industrial Bank depositors, and the corporation will continue to insure funds in their accounts.

As of September 30, 2019, City National Bank had assets worth about $ 120.6 million, the volume of deposits amounted to about $ 111.2 million.

According to the corporation, the expenses of the Deposit Insurance Fund in connection with the liquidation of the bank will amount to $ 2.5 million.

FDIC insures deposits up to $ 250 thousand. The insurance system at the end of the first half of the year involved 5303 banks and savings institutions of the country.

Last year in the United States there was not a single case of bankruptcy of financial institutions. Since 1933, this has happened for the third time. The peak number of 157 liquidated financial institutions was noted in 2010.

source: bloomberg.com