CORRECTED - UPDATE 4-U.S. regulators close seven banks

(Adds dropped figure in paragraph 17)

* Six of the banks controlled by one family - FDIC

* Brings failures so far this year to 52

* City Bank signs 'cease and desist order'

(Adds City Bank)

By JoAnne Allen

WASHINGTON, July 2 (Reuters) - U.S. bank regulators closed seven institutions on Thursday, including six banks in Illinois controlled by one family and a small bank in Dallas, bringing the total number of U.S. bank failures to 52 so far this year.

Founders Bank, of Worth, Illinois, was the largest of the financial institutions seized. The Federal Deposit Insurance Corp said Founders had $962.5 million in assets and approximately $848.9 million in deposits.

The PrivateBank and Trust Co of Chicago (PVTB.O: Quote, Profile, Research) will assume all of the deposits of Founders Bank.