March, 15, 2010

U.S. regulators have shut down LibertyPointe Bank, chaired by real estate magnate Shaya Boymelgreen. The bank thus gained the dubious distinction of being the first bank to be shuttered by U.S. authorities in New York in 11 years. But it soon had company: The next day, Friday, regulators seized three more banks, including Park Avenue Bank, also based in the city.

The other two seized Friday were small institutions - Old Southern Bank of Orlando, Florida, and Statewide Bank of Covington, Louisiana. LibertyPointe was closed by regulators on Thursday, a day earlier than usual for seizing banks, because many of its employees are Jewish and head home for the Sabbath on Friday evenings, the FDIC said.The seizures brought the number of U.S. bank failures so far this year to 30.

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