Story Published:
Jul 3, 2009 at 4:18 PM CDT
Story Updated:
Jul 3, 2009 at 6:34 PM CDT
The financial industry in Illinois is rattling after six banks owned by one holding company closed Thursday.
The John Warner Banks in Danville and Clinton do not exist anymore.
They were handed over to the Federal Deposit Insurance Corporation and will re–open Monday under new owners.
The FDIC says the banks failed because they lost too much money on bad loans.
The Better Banks, a 113–year old Peoria based institution remain healthy.
The Better Banks Chairman of the Board says the Federal Government examines a bank ever 18–months and gives it a rating.
However Steve Backlund says the information is not for public consumption, making it more difficult for consumers to do research.
"We get that rating but we are not allowed to publish that rating or share it with anyone. It is strictly confidential. It is a shame. We would love to have ours published. It would make it easier if they would do that," said Backlund.
Backlund says there are more banks in Illinois than any other state, which helps explain why our state is leading the nation in bank failures.
All bank deposits are now insured up to 250–thousand dollars.
Backlund says it is unlikely anyone lost money in this latest round of bank closings.
Saturday, Jul 4 at 12:37 PM real estate guru wrote ...
a client comes to me and says they are qualified to buy a house. the bank says they are qualified to buy a house and they are willing to lend their customer the money. happens everyday, good economy or bad, good clients or bad. i am always happy to help someone find a house, and you would do the same if it were your job too. so dont even go there CAL. a large part of this mess belongs on the shoulders of the lenders who made the risky loans, not the realtors.