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| Number of failed US banks hits 94 | Number of failed US banks hits 94 |
| (about 1 hour later) | |
| Another two US banks have been closed by the federal regulator, taking the total number of American banking failures this year to 94. | Another two US banks have been closed by the federal regulator, taking the total number of American banking failures this year to 94. |
| The Federal Deposit Insurance Corporation (FDIC), which controls the banking sector, has shut Irwin Union Bank & Trust and Irwin Union Bank. | The Federal Deposit Insurance Corporation (FDIC), which controls the banking sector, has shut Irwin Union Bank & Trust and Irwin Union Bank. |
| The move comes after their parent firm - Irwin Financial - was unable to meet an FDIC demand to boost their capital. | The move comes after their parent firm - Irwin Financial - was unable to meet an FDIC demand to boost their capital. |
| The failure of the two banks is likely to cost the FDIC $850m (£522m). | The failure of the two banks is likely to cost the FDIC $850m (£522m). |
| This will come from the regulator's banking failure insurance fund, which has fallen this year from $45bn to £10.4bn, due to the number of banks that have failed. | This will come from the regulator's banking failure insurance fund, which has fallen this year from $45bn to £10.4bn, due to the number of banks that have failed. |
| However, while some analysts have questioned whether the FDIC will need to press for more funds from the government, the regulator says its insurance scheme has $42bn in reserves to handle failures over the next year. | However, while some analysts have questioned whether the FDIC will need to press for more funds from the government, the regulator says its insurance scheme has $42bn in reserves to handle failures over the next year. |
| The accounts held by Kentucky-based Irwin Union Bank and Indiana-based Irwin Union Bank & Trust are being taken on by rival First Financial Bank. | The accounts held by Kentucky-based Irwin Union Bank and Indiana-based Irwin Union Bank & Trust are being taken on by rival First Financial Bank. |
| The FDIC insures each bank account at a failed bank up to $250,000. |