28 Banks Failed Year To Date

The pace of bank failures has slowed relative to late-2010 but still 28 banks have failed year to date, including two on Friday. Western Springs National Bank and Trust (IL) was closed Friday by the OCC, which in turn appointed the FDIC as receiver, which, in turn, entered into a purchase and assumption agreement with Heartland Bank and Trust Company, also of Illinois. And Nevada Commerce Bank was closed by the Nevada Financial Institutions Division, which appointed the FDIC as receiver, and the FDIC tapped City National Bank out of Los Angeles to assume all of the deposits of Nevada Commerce Bank.

Here’s why bank failures are a bonanza for healthy banks.