Regulators in the United States have closed another seven banks across various states, bringing the total number of closed banks to 37 in 2010 alone. 140 banks were closed last year because of defaults and the recession.
Depositors´ money at every bank is insured and safe up to US$250,000 per account. This means that every closure has piled up to collectively sap the deposit insurance fund out of billions of dollars.
New regulation is currently being drafted in the Senate that will signify the largest financial overhaul in the United States since the Great Depression.