138 US banks go belly up in just 10 months

The count of American banks are falling by the day, with as many as 138 entities biting the dust this year.

The bank collapses in 2010 is all set to cross the total count of 140 failures last year, indicating that financial woes in the world's largest economy is far from over.

Seven banks were shut down by the authorities on Friday, taking the total number of failures this month to 12.

Hillcrest Bank, First Suburban National Bank, The First National Bank of Barnesville, The Gordon Bank, Progress Bank of Florida, First Bank of Jacksonville and First Arizona Savings, were closed down on Friday, according to the FDIC.

The Federal Deposit Insurance Corporation (FDIC), which insures deposits at over 8,000 US banks, has said these seven closures are expected to cost the agency about $478 million.

Going by official data, the count of 'problem' banks -- those at risk of failure -- climbed to a 17-year-high of 829 in the June quarter.

Seven banks went out of business in September, while August saw the collapse of ten entities. The maximum number of failures this year happened in April, when 23 entities were shut down.

Notwithstanding huge stimulus measures and near-zero interest rate regime, the American economic recovery continues to remain fragile. The banking industry is also hit by high unemployment levels, which is causing rising defaults.