Banks in Colorado and North Carolina were shut as rising unemployment and a loss of jobs shrinks household wealth in the deepest recession in a quarter century, pushing the toll of U.S. bank failures to 23 this year.
New Frontier Bank in Greeley, Colorado, with $2 billion in assets and $1.5 billion in deposits, and Cape Fear Bank in Wilmington, North Carolina, with $492 million in assets and $403 million in deposits, were shut today by state regulators. The Federal Deposit Insurance Corp., named receiver, gave New Frontier depositors 30 days to transfer accounts, and arranged to have Cape Fear’s assets to be assumed by First Federal Savings and Loan Association of Charleston in South Carolina.
“All insured depositors of New Frontier are encouraged to transfer their insured funds to other banks,” the FDIC said in a statement. In North Carolina, the agency said: “Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relations to retain their deposit insurance coverage.”
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