Chicago bank shuttered, makes 3rd failure of 2013

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WASHINGTON (AP) — Regulators say they have closed a small bank in Chicago, bringing to three the number of U.S. bank failures this year following 51 closures in 2012.

The Federal Deposit Insurance Corp. on Friday seized Covenant Bank, which had about $58.4 million in assets and $54.2 million in deposits as of Dec. 31.

Liberty Bank and Trust Co., based in New Orleans, agreed to assume all of Covenant Bank's deposits and buy essentially all of the failed lender's assets.

The failure of Covenant Bank, which had a single banking branch, is expected to cost the deposit insurance fund $21.8 million.

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