Five more banks shuttered, bringing '09 total to 89

Updated

Regulators closed five more banks Friday night, bringing the total number of failures this year to 89, as losses on bad mortgages and construction loans continue to plague the financial industry.

Located in Illinois, Iowa, Kansas and Arizona, the banks will cost the Federal Deposit Insurance Corp., the federal agency in charge of taking them over when they fail, a total of $401 million to close. Some observers say the price tag for these failures is becoming an issue; the agency has only a little over $10 billion in its account and will have to go to the Treasury if that sum rapidly dwindles.

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