Pulaski Savings Bank in Illinois has been shut down by US regulators, marking the first bank failure of 2025. This unexpected closure has prompted action from the Federal Deposit Insurance Corporation (FDIC).
FDIC Takes Over
The FDIC stepped in as receiver and quickly moved all deposit accounts and most assets to Millennium Bank. This swift action aims to minimize disruption for customers.
Fraud Suspected, Millions in Losses
The FDIC will cover approximately $28.5 million in losses from its Deposit Insurance Fund. The agency cited “suspected fraud” as the main reason for the bank’s collapse, though further details haven’t been released.
Financial State of the Bank
At the time of its closure, Pulaski Savings Bank held about $49.5 million in assets and $42.7 million in deposits. This is significantly smaller than the failures seen in 2024.
A Troubled Banking Sector?
The FDIC’s “problem list” currently includes 68 US banks facing potential financial issues. This highlights ongoing concerns about the health of the banking sector. Last year saw two bank failures: Republic First Bank ($6 billion in assets) and First National Bank of Lindsay ($107.8 million in assets).
Disclaimer: This news report is for informational purposes only and should not be considered investment advice. Always conduct thorough research before making any financial decisions.
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