From AP - News Headlines -

Banks in Danville, Clinton Among Half-Dozen Closed By Regulators

State regulators closed six Illinois banks owned by one holding company on Thursday. Banks in Danville, Clinton and four other Illinois cities have been handed over to the Federal Deposit Insurance Corporation, which is arranging to have them reopen Monday under new owners.

The First National Bank of Danville became the 50th FDIC-insured bank to fail this year, and the 11th in Illinois, when it was placed in receivership yesterday by the Illinois Department of Financial and Professional Regulation. The bank will reopen Monday as part of First Financial Bank of Terre Haute.

Regulators also closed the John Warner Bank in Clinton --- it reopens Monday as part of the State Bank of Lincoln.

Other banks scheduled to reopen under new owners are the First State Bank of Winchester, Founders Bank in Worth, Rock River Bank in Oregon and the Elizabeth State Bank.

All six banks were part of the Founders Group, based in Worth, a Chicago suburb. An FDIC news release says the banks failed because they lost too much money to bad loans, including investments in collateralized debt obligations.

Two of the Founders Group's banks, in Gilman and Peotone, are NOT affected.

The FDIC says depositors will not lose any money due to the closures, and can still access their money over the weekend by ATM or debit card, or by writing checks. The federal agency has set up toll-free numbers to call for more information about the bank closures. The number for the First National Bank of Danville is 1-800-591-2817. The number for the John Warner Bank is 1-800-837-0215. The phone numbers will be operational on Friday and Saturday from 9 AM to 6 PM, Sunday from 12 PM to 6 PM, and thereafter from 8 AM to 8 PM (all times CDT). More information is also available on the FDIC website, at www.fdic.gov.

The six Illinois banks --- plus one in Texas --- that were placed in receivership bring to 52 the number of FDIC-insured banks that have been closed this year.

Categories: Business, Economics