FDIC closes Chicago bank, pays insured deposits

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Associated Press

Posted on March 9, 2012 at 8:01 PM

Updated Friday, Mar 9 at 8:02 PM

WASHINGTON (AP) — Regulators have closed a small bank in Chicago, which makes the 13th U.S. bank to fail this year.

By this time last year, 23 had been shuttered.

The Federal Deposit Insurance Corp. on Friday closed New City Bank, which had $71.2 million in assets and $72.4 million in deposits as of Dec. 31.

The FDIC did not find another lender to take over the bank's operations, so it will mail out checks to depositors in the amount of their insured funds.

The agency said it needs to obtain information from New City Bank customers to determine the number of uninsured deposits at the bank. The FDIC insures up to $250,000 per depositor.

The bank failure is expected to cost the deposit insurance fund $17.4 million.

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