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FDIC seizes two more banks

Associated Press

Regulators seized two more banks Friday, raising the number of bank failures this year to 23.

The Federal Deposit Insurance Corp. took over Cape Fear Bank in Wilmington, N.C., and New Frontier Bank in Greeley, Colo., after state regulators closed them down.

The FDIC sold Cape Fear Bank to First Federal Savings & Loan Assn. of Charleston, S.C. The agency failed to sell New Frontier, and will keep it open for 30 days so customers can open accounts elsewhere. The failures will cost the deposit insurance fund a total of $800 million, the FDIC estimated.

The tally of bank failures this year is just two shy of the total of 25 for all of 2008.

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