Fun

2 American Banks Have Failed Since Coronavirus Started Spreading in the US

News Feed - 2020-04-07 01:04:44

2 American Banks Have Failed Since Coronavirus Started Spreading in the US


Since the coronavirus started spreading in the U.S., two banks have failed and were shut down by state banking authorities. One was a bank in West Virginia and the other was in the state of Nebraska. The governor of West Virginia has already issued a stay-at-home order due to rising covid-19 cases.


Also read: IMF Declares Global Recession, 80 Countries Request Help, Trillions of Dollars Needed Banks Failing During Pandemic


The latest bank to fail in the U.S. was a small bank in West Virginia called “The First State Bank.” It was closed on Friday by the state’s Division of Financial Institutions, according to the Federal Deposit Insurance Corporation (FDIC), an independent agency of the U.S. government that aims to protect the funds depositors place in banks and savings associations. The agency explained: The First State Bank has experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015. The bank’s December 31, 2019 financial reports indicated capital levels were too low to allow continued operations under federal and state law. The Federal Deposit Insurance Corporation (FDIC) announced on Friday that a small bank in West Virginia has failed and has been shut down by the state’s banking regulator. Its deposits and customers have been transferred to another bank.


The FDIC subsequently entered into a purchase and assumption agreement with another bank in the state, MVB Bank of Fairmont, to assume all of the deposits of the failed bank. Depositors of The First State Bank automatically became depositors of MVB Bank. As of Dec. 31, 2019, The First State Bank had approximately $152.4 million in total assets and $139.5 million in total deposits.


The four branches of The First State Bank have reopened as branches of MVB Bank. The agency emphasized that it “strongly encourages bank customers to follow Centers for Disease Control and Prevention guidance on social distancing and utilize online and electronic banking capabilities. In keeping with West Virginia Governor Jim Justice’s Stay-at-Home Order, customers should visit a bank branch only if an in-person visit is essential and only after making an appointment.”


Following the FDIC’s announcement, some people voiced their concerns on social media that more banks will fail due to the pandemic. However, the agency insisted that the failure of The First State Bank was not due to the coronavirus outbreak. Since the first reported covid-19 case in the U.S., two banks have failed and were shut down by state banking authorities: one in West Virginia and one in Nebraska. The FDIC has insisted that the failure was not related to the pandemic that has swept through the states. First Bank to Fail Since Coronavirus Began Spreading in the US


The first covid-19 case in the U.S. was confirmed on Jan. 21, and the first bank in the country to fail after that was Ericson State Bank in Nebraska. The bank, which had only one branch, was closed down by the state’s Department of Banking and Finance on Feb. 14.


The FDIC subsequently entered into a purchase and assumption agreement with Farmers and Merchants Bank in Milford, Nebraska, to assume all of the deposits of the failed bank. As of Dec. 31, 2019, Ericson State Bank had approximately $100.9 million in total assets and $95.2 million in total deposits.


Prior to The First State Bank and Ericson State Bank, four U.S. banks failed in 2019, none of which were in the first four months of the year. No banks failed in 2018, according to the FDIC.


Do you think more banks will fail this year? Let us know in the comments section below. ICO Crackdown: 11 Class-Action Lawsuits Filed Against Cryptocurrency Companies NEWS | 1 day ago


A number of class-action lawsuits have been filed against various digital asset firms and exchanges on Friday. The U.S.-based “litigation… read more. Pandemic Assistance: Maduro to Airdrop Cryptocurrency to All Doctors in Venezuela NEWS | 3 days ago


Venezuela"s President Nicolas Maduro has announced that he is airdropping cryptocurrency to every doctor in his country as a token… read more. Tags in this story american banks, Banking Crisis, banking system failed, banking system failing, banks, banks coronavirus, banks covid-19, banks failed, banks failing, banks failure, banks opening, banks shut down, banks shutdown, coronavirus banks, covid 19 banks, FDIC, fdic coronavirus, fdic covid 19, US banks, us coronavirus


Image Credits: Shutterstock, Pixabay, Wiki Commons Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimer Show comments Please enable JavaScript to view the comments powered by Disqus.

News Feed

The Fed Codifies Fourth Consecutive 75bps Rate Hike — Stocks, Bitcoin, and Metals Rise
The Fed Codifies Fourth Consecutive 75bps Rate Hike — Stocks, Bitcoin, and Metals Rise The U.S. Federal Reserve introduced another jumbo rate hike on Wednesday, Nov. 2, 2022, by
EU Makes Deal on MiCA Legislation to Regulate Crypto Markets
EU Makes Deal on MiCA Legislation to Regulate Crypto Markets Representatives of key European Union (EU) institutions and member states reached an agreement on the Markets in Crypto
SEC Chair Gary Gensler Says Crypto Will ‘Not End Well’ if It Stays Outside Regulations
SEC Chair Gary Gensler Says Crypto Will "Not End Well" if It Stays Outside Regulations The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, says that cr
Turner Wright8 hours agoFormer MAS chair who called crypto ‘highly risky’ wins Singapore’s presidential raceTharman Shanmugaratnam has served as Singapore’s finance minister and the head of the country’s financ
Coinbase pushes for UK crypto adoption with Apple Pay integration
Ezra Reguerra10 hours agoCoinbase pushes for UK crypto adoption with Apple Pay integrationCoinbase said that the Apple Pay integration is part of its efforts to increase the number of crypto holders in the United Kingdom
XRP Price Could Hit $21 This Bull Cycle With 1.618 Fib Level As Next Target
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Reddit shares jump after-hours on OpenAI data-sharing deal
Brayden Lindrea3 hours agoReddit shares jump after-hours on OpenAI data-sharing dealReddit said the deal allows OpenAI’s tools to “better understand and showcase Reddit content” with the AI firm back new features o
New York City Mayor-Elect Eric Adams Will Take First 3 Paychecks in Bitcoin, Promises to Make NYC Center of Crypto
New York City Mayor-Elect Eric Adams Will Take First 3 Paychecks in Bitcoin, Promises to Make NYC Center of Crypto New York City Mayor-elect Eric Adams says that he will take his f
Biggest Movers: QNT Rebounds on Friday, UNI Extends Recent Decline
Biggest Movers: QNT Rebounds on Friday, UNI Extends Recent Decline Quant ended a streak of three consecutive declines on Friday, as prices rebounded following recent losses. The mo
Arijit Sarkar2 hours agoSK Telcom to launch Web3 wallet with Aptos and Atomrigs LabThe South Korean telecommunications giant aims to expand its “affiliations with customer-preferred mainnets and decentralized applicati
Chainlink Flashes Daily Buy Signal – Breakout Next?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
HODL Fever: Bitcoin Holders Refuse To Sell As Data Shows Record BTC Stash
Este artículo también está disponible en español. Several investing strategies have emerged as Bitcoin and crypto continue to grow in value and expand their use cases. Fo