The closing down of the failure banks is still persisting in the region, with ShoreBank Corp. new on the list, which have got the orders to shut down the concern for 13 months. Along with that, seven other banks were also ceased by regulators and the number of failure banks has now risen to 118 this year.

The closure of the total eight new banks incurred FDIC's deposit-insurance fund a cost of $473.5 million. It has been expected that this year, the total bank failures will exceed the last year's figure of 140, as stated by FDIC Chairman, Sheila Bair.

As per the statements given by FDIC, ShoreBank used to operate under Federal Deposit Insurance Corp. It has 15 branches, which are spread over Chicago, Cleveland and Detroit. The branches will resurrect as Urban Partnership Bank.

Dory Rand, the President of the Chicago-based Woodstock Institute, stated that the best part is that Shorebank would be catering to the South Side community, under the novel management of Urban Partnership.

People acquainted with the matter told that the Shorebank, originated in 1973, took more than $145 million from various firms, including Goldman Sachs Group Inc., General Electric Co., JPMorgan Chase & Co., and Citigroup Inc., which will now be part of the new entity. As on June 30, the bank owned assets worth $145 million.

Under the Urban Partnership, the bank will be converted into a community development financial institution, serving low and middle-income families and will be headed by Farrow, a former Executive at the Chicago Board of Trade and Bank One Corp.