US authorities bail out 99th struggling bank

REGULATORS have shut down San Joaquin Bank in California, marking the 99th failure this year of a federally insured bank.<br /><br />The Federal Deposit Insurance Corporation (FDIC) was appointed receiver of San Joaquin Bank, based in Bakersfield, California. It had $775m (&pound;474m) in assets and $631m in deposits as of September 29.<br /><br />The FDIC said the bank&rsquo;s deposits will be assumed by Citizens Business Bank, based in Ontario, California. Its five branches will reopen today as branches of Citizens Business Bank.<br /><br />San Joaquin Bank&rsquo;s failure is expected to cost the FDIC&rsquo;s insurance fund $103m.<br /><br />Depositors&rsquo; money is not in danger. The FDIC is backed by the government, and deposits are guaranteed up to $250,000 per account. The FDIC board recently proposed to have US banks prepay about $45bn of their insurance premiums &mdash; three years&rsquo; worth.