North Houston Bank Shuts Down

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The financial crisis hit and a Houston-based bank failed. It was shut down on Friday by the government as part of the nine banks closed by bank regulators. Shutting down North Houston Bank means that the recession is still covering the economy.

For those who think that bank closures are now a thing from the past, think again.

North Houston Bank was shut down by bank regulators on Friday and it became one of nine banks closed down recently. Although, there’s really nothing to change besides the name of the bank outside the building located at West Little York very near TC Jester as far as the customers are concerned.

As the weak economy produces a long string of defaults, FDIC (Federal Deposit Insurance Corporation) says that the Minneapolis U.S. Bank has taken over most of the deposits and assets. Customers will still have regular access to funds because it’s similar to a merger.

Since the beginning of the financial crisis, this latest closures has the most banks in one day. FDIC pointed out that it’s usually banking institutions that take longest to recover in a recession. According to FDIC’s Martin Payne, he said “From the perspective of the customer, there should not be any concern since they have FDIC insurance. The FDIC makes sure that no customer will lose money due to the closure. However, it’s going to take a little time before we go forward as there may be some more failures.”

For the other nine banks, three of them are outside of Texas – this includes North Houston Bank. There are also two Texas banks – Citizens National Bank and Madisonville State Bank. The others are from Illinois, Arizona, and California.

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North Houston Bank Shuts Down

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