Regulators Close Banks In Colorado, Mich., Minn.

NEW YORK – Regulators have shut Warren Bank in Warren, Mich., and two small banks in Colorado and Minnesota, boosting the number of failed U.S. banks this year to 98 as loan defaults rise in the worst financial climate in decades.

The Federal Deposit Insurance Corp. took over Warren Bank, with about $538 million in assets and $501 million in deposits as of July 31. The Huntington National Bank, based in Columbus, Ohio, agreed to assume the deposits and about $83 million of the assets of the failed bank. The FDIC will retain the remaining assets for later disposition.

Warren Bank's six branches will reopen Saturday as offices of Huntington National Bank.
The failure of Warren Bank is expected to cost the deposit insurance fund an estimated $275 million.

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Editors Note: About halfway through the article, the FDIC wants the banks to prepay insurance premiums. This is due to the FDIC finances being depleted.