Banks in Ill., Minn., Utah are shuttered

Regulators shut down banks in Illinois, Minnesota and Utah on Friday, bringing to four the number of bank failures so far in 2010, following 140 closures last year amid the weak economy and mounting loan defaults.

The Federal Deposit Insurance Corp. took over Barnes Banking Co., based in Kaysville, Utah, with $827.8 million in assets and $786.5 million in deposits.

The agency also seized two smaller banks: St. Stephen State Bank of St. Stephen, Minn., with $24.7 million in assets and $23.4 million in deposits, and Town Community Bank and Trust, based in Antioch, Ill., with $69.6 million in assets and $67.4 million in deposits.

First State Bank of St. Joseph, Minn., agreed to assume the assets and deposits of St. Stephen State Bank. First American Bank, based in Elk Grove Village, Ill., is buying the deposits and $67.6 million of the assets of Town Community Bank and Trust. The FDIC will retain the rest for sale. [Read the full article]

NEW YORK (AP) — Johnson & Johnson issued a massive recall Friday of over-the-counter drugs including Tylenol, Motrin and St. Joseph’s aspirin because of a moldy smell that has made people sick.

It was the second such recall in less than a month because of the smell, which regulators said was first reported to McNeil in 2008. Federal regulators criticized the company, saying it didn’t respond to the complaints quickly enough, wasn’t thorough in how it handled the problem and didn’t inform the Food and Drug Administration quickly.

The recall includes some batches of regular and extra-strength Tylenol, children’s Tylenol, eight-hour Tylenol, Tylenol arthritis, Tylenol PM, children’s Motrin, Motrin IB, Benadryl Rolaids, Simply Sleep, and St. Joseph’s aspirin. [Read the full article]

Taiwan will allow China’s institutional investors to invest up to $500 million in the island’s stock market, the government said Saturday, in its latest step to relax control on trade and investment with its rival.

Taiwan had for decades barred Chinese capital, fearing it could give Beijing control of the local economy, but opened selected industries to Chinese investment for the first time last year.

Starting Monday, Chinese institutional investors can buy shares in Taiwan’s stock market, with purchases by any single investor limited to $80 million, the Financial Supervisory Commission said.

The current investment cap would amount to less than 5 percent of the total capitalization of the Chinese institutional investors approved by mainland authorities, short of the 10 percent analysts had expected. [Read the full article]

President Barack Obama on Saturday slammed Wall Street’s “audacity” for fighting a bailout fee he wants to slap on financial firms and said his Republican opponents had sided with big banks.

With Obama’s popularity hovering around 50 percent and congressional elections in November, the White House wants to cast itself alongside ordinary Americans while branding Republicans as the party for the rich.

“Like clockwork, the banks and politicians who curry their favor are already trying to stop this fee from going into effect,” Obama said in his weekly radio and Internet address.

“We’re not going to let Wall Street take the money and run. We’re going to pass this fee into law,” Obama vowed after proposing a levy to raise up to $117 billion over the next 10 years to recoup projected losses on a taxpayer bank bailout. [Read the full article]

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