Six more banks are closed by US regulators

MORE American banks failed over the weekend, bringing the total for the year to 130, which is the highest since 1992.<br /><br />Of the six failed banks, the largest to be closed by regulators was Cleveland&rsquo;s AmTrust Bank, whose 66 branches and $8bn (&pound;4.9bn) in deposits will be assumed by New York Community Bank.<br /><br />AmTrust is the fourth largest bank in the US to fold this year. <br /><br />The Federal Deposit Insurance Corporation (FDIC) almost closed AmTrust earlier in the year, but campaigning by Republican politicians and Cleveland&rsquo;s Democrat mayor earned it a reprieve.<br /><br />In the six months to the end of September, the bank made net losses of $418m, and its deposit base shrank by 17 per cent.<br />FDIC finally seized the bank last week with $12bn in assets.<br /><br />The move comes days after AmTrust Bank&rsquo;s parent company AmTrust Financial filed for bankruptcy, saying it had been hit by the downturn in the US housing and construction markets. <br /><br />Three banks closed in Georgia, bringing the state&rsquo;s total to 24, and banks also failed in Illinois and Virginia.