Nine Bank Failures in 1 Day Sets Record
Five of the banks - four in Nebraska and one in Iowa - were owned by a holding company whose major stockholder was Timothy M. Brennan of Omaha.
Two banks in Louisiana and one each in Oklahoma and Kentucky also failed, bringing the year-to-date total to 173.
The previous one-day record was set May 31, 1985 when seven banks failed, said Alan J. Whitney, an FDIC spokesman.
The FDIC pumped cash into a 10th bank - Crossroads Bank, Victoria, Texas - to avoid a failure, bringing the number of assistance transactions this year to 18.
Nebraska Banking Director Cynthia Milligan said the banks in her state failed because bank insiders - shareholders, directors and officers - failed to repay loans. The records in those cases have been referred to law enforcement agencies for investigation.
``These are not normal closings caused by the economy,'' she said. …