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AmTrust Bank gets official closure; New York Community Bank takes over assets

December 9, 2009

The recession and mountains of bad debt is to be blamed for the closure of as many as 130 banks in the US so far in the year 2009. The latest victim for the effect is the Cleveland, Ohio-based AmTrust Bank that got shut down when the Federal Deposit Insurance Corp. has taken over its operations on December 4, 2009.

Westbury, N.Y. based New York Community Bank agreed to take over the deposits of AmTrust Bank and assets to a tune of about $9 billion. The 66-odd AmTrust Bank will now function as branches of New York Community Bank. The loss to a tune of $6 billion will be borne by FDIC and the new owner of the bank.

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