The spate of bank closures in US is not showing any signs of abating. A record number of nine banks were closed down last week in US , taking the year to date total to 115. The massive closures were primarily due to increasing bad debts related to commercial real estate and also individual mortgages.
The US FDIC is gearing itself for handling increased bank failures for many more weeks to come, as the annual review of the weak banks in August revealed gaping holes in the capital adequacy of over 400 banks.