On Friday, regulators closed another 5 banks across America to take the number of banks which have crunched under the financial condition this year to 120. Despite the fact that the economy has started to show signs of recovery, financial institutions around the county continue to bear the brunt of souring loans and lingering hurt of last year's recession.

On Friday, the United Commercial Bank, based in San Francisco, became the largest and fifth bank to be taken over by regulators as it crunched under annual failures, the amount of which the bank had not seen since the 1990s when it was hit by huge savings and loans crisis.

The East West Bank of Pasadena, California is expected to take over United Commercial's bank deposits of nearly $7.5 Billion, as well as $10.2 Billion worth of assets. With the growing number of banks which are being taken over by regulators, the recovery of the economy has come under doubts. Authorities are now looking at ways to ensure that the world's largest economy jumps out of the recession hurt as soon as possible. Among other banks to be closed were Detroit's Home Federal Savings Bank and Gateway Bank of St. Louis.