Home
Savings Rates
CD Rates
Bonds
Mortgage Rates
Home Equity Rates
Auto Loan Rates
Credit Cards
Brokerages

From the FDIC press release:

"First National Bank of Nevada, Reno, Nevada, and First Heritage Bank, N.A., Newport Beach, California were closed today by the Office of the Comptroller of the Currency and the FDIC was named receiver."

For depositors of these banks, the good news is that you won't lose any money even if you had deposits over the FDIC limits:

"All depositors, including those with deposits in excess of the FDIC's insurance limits, will automatically become depositors of Mutual of Omaha Bank for the full amount of their deposits."

This is nice for depositors with uninsured deposits, but why did the FDIC do this when the closure is going to cost the Deposit Insurance Fund $862 million? From the press release, "The cost of the transactions to the Deposit Insurance Fund is estimated to be $862 million."

 

Submitted: Jul 26, 2008    Views: 571    Comments: 1    Likes: 1   


View Article: http://www.fdic.gov/news/news/press/2008/pr08063.html


Sponsor Updates and Offers

Sign up for Zions Direct’s free weekly newsletter.

Get market information, CD and Bond auction updates, new-issue alerts and more.

Related Articles:



1

Email this story Email to someone | Print Story Print Content | Add to reading list

Comments Received:

Ben
(Unregistered)

The FDIC is creating an even bigger moral hazard issue if it bails out everyone with over 100K.

Posted: Jul 26, 2008



Add Your Comments:

Your Name:

Spam protection control:


Financial products of all nature bear inherent risks and this website is not a financial advisory service; it is a forum for users to share and to compare notes and observations on financial publications. The website provides, free of charge, the technical and logistical apparatus and the medium for users to share and to publish financial information and to comment on publications. As such, the website's operator can not and does not take responsibility for information, observations or opinions of any sort or nature provided by third parties with whom it is not affiliated who use the website to publish, to comment or as a means of solicitation. Users are specifically warned against following any advice related to specific instruments, including, but not limited to, equity securities, that may be provided by other users directly on this site or on web pages to which other users have provided links on this site. BestCashCow.com can not and does not check or verify the qualifications and credentials of users who publish or comment on this site or on linked pages. Users should seek personalized advice from qualified professionals regarding all personal financial issues and evaluate the risks and applicability to their own circumstances of each financial product discussed regardless of who the publisher is or purports to be. Should you, through your use of this site, identify an individual or organization purporting to offer personalized advice, you bear all responsibility to ensure that the individual or organization has the qualifications that they may represent on the website, and that their advice is appropriate for your circumstances. On certain webpages, BestCashCow.com provides information related to rates on US-based savings accounts, CDs, short-term government bonds, and other US cash equivalent securities, also free of charge to internet users for their independent use. The accuracy of this information is not guaranteed, and the information, like all other information on this website, should not be construed to provide investment advice, nor to endorse a financial product of any sort.

© 2010 BestCashCow.com, LLC. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy.