CARSON CITY, Nev., July 26, 2008
FDIC Takes Over 2 Western Banks
1st National Bank Of Nevada, First Heritage Bank In Receivership, Regulators Say Will Reopen Monday
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A bank employee posts a notice that 1st National Bank of Nevada is in FDIC receivership on Friday, July 25, 2008, after federal regulators closed the bank in Carson City, Nev. Twenty-eight branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators. (AP Photo/Brad Horn, Nevada Appeal)
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In-Depth Bank Seizure Q&A What if my bank fails? Some questions and answers in the wake of IndyMac Bank.
The banks - owned by Scottsdale, Arizona-based First National Bank Holding Co. - closed Friday and were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.
The FDIC said the takeover of the failed banks was the least costly resolution and all depositors - including those with funds in excess of FDIC insurance limits - will switch to Mutual of Omaha with "the full amount of their deposits."
The FDIC also said account holders can access their funds during the weekend by writing checks or using ATM or debit cards.
It was the second major bank failure in recent weeks.
On July 11, federal regulators stepped in and seized the assets of a savings and loan, IndyMac Bank, after the mortgage lender succumbed to problems from the tight credit markets and mortgage foreclosures.
It was the second-largest bank failure in U.S. history, the government said. As of March 31, IndyMac had $19.06 billion in total deposits.
Investment bank Bear Stearns nearly collapsed in March, but was bought out by banking giant JPMorgan Chase & Co. in a deal orchestrated by the Federal Reserve Bank of New York.
The latest banks to fail had total assets of $3.6 billion as of June 30. That was down from $4.1 billion six months earlier.
Calls to 1st National were referred by a receptionist to Joe Martony, an executive vice president in Scottsdale. Martony didn't return repeated calls to his office.
Bill Uffelman of the Nevada Bankers Association said Friday the FDIC action "is a reflection of the times for the banks. It's a poor economy."
Uffelman cautioned against the sort of consumer concern that prompted many customers of IndyMac Bank branches to wait for hours in line to withdraw funds last week. Bank deposits are guaranteed by the FDIC up to $100,000, he noted.
Gov. Jim Gibbons said the bank takeover will be closely monitored in Nevada "to ensure there's minimal disruption to business and that employees' jobs are protected as much as possible."
Arizona Gov. Janet Napolitano spokeswoman Shilo Mitchell said in a statement that the FDIC's takeover of 1st National is not indicative of the overall banking climate in Arizona.
"It's very important that Arizonans know that their deposits are secure," said Felecia Rotellini, superintendent of Arizona Department of Financial Institutions. "They are well-managed and the 1st National Bank of Arizona issues should not cause any panic in Arizona."
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment See all 66 Comments
- daryl1-
Banks are forced by law to keep only a very small percentage of their assets dedicated to everyday transactions, and in turn they stimulate and bolster the economy by keeping money flowing freely through it by investing it, loaning out money to the little people, etc. The downfall of the banks is not their greed, it''s a symptom of the downturn of the economy in general.
Frankly I''m jealous of your one dimensional logic; it would be nice to always think "THEY" is pure evil : ) - Reply to this comment
- irresponsible captialism that fed the greed of the wealthy is mostly to blame here.
personally I want to see many wealthy people completely wiped out and living in poverty.. then when they beg complain and whine we can all tell them they should be proud to live in the greatest country on the planet....
these SOB''s made decisions based purely on how much money they could make for themselves. Once a few big banks showed them how to do it, all the others followed suit in an attempt to keep up with the jonses.. and all in the pursuit of personal wealth with no foresight to consequences or damage it would cause.
this is what capitialism has become... yuo take whatever you can when you can, because nobody else is going to watch out for you or make decisions that truly benefit the majority. You make decision that take bigger care of the few, then you run as fast as you can an dlive the dream while others are left to pick up the pieces. - Reply to this comment
- Hey Rush,
Don''t knock the people of Colombia-Juan Valdez is growing a new crop and it ain''t coffee. - Reply to this comment
Posted by caliengineer at 09:43 PM
Please be not so stupid.
You can dream just don''t wake up
and tell us your dream.
It makes us think less of you and
the people of colombia.- Reply to this comment
- vnveteran,
You are correct, they are planning these things to kill us off. I want you to know I have been warned in dreams. I saw that some people just would NOT get sick. After several dreams, I understood: those whose faith is strong, they will not get sick.
We must fast and pray in this late hour to hear the voice of the Lord.
Posted by caliengineer at 09:43 PM : Jul 26, 2008
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Uh caliegineer,
I keep having these recurring dreams about Angelina Jolie......Do you think there''s a chance? Naw, nevermind- just wishful thinking I guess. - Reply to this comment
- To turn a blind eye to corporate thievery in the place of good governance
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Posted by Nancy_Naive at 10:25 PM
Exactly right. - Reply to this comment
- "Why aren''''t shareholders voting these chumps out for underperforming before banks collapse, like with Wachovia?" Posted by OneWorldUSA
This usually happens because the majority of shares are concentrated into a few hands, and those hands are a tight circle of corruption, collusion, and nepotism. - Reply to this comment
- "The banks - owned by Scottsdale, Arizona-based First National Bank Holding Co."
And so it would be safe to assume that First National is already slated for receivership? After all, the parent company is only as healthy as its children. - Reply to this comment
- I apologize for that last post.
I feel bad for making fun of the re.tarded wing of the Republican Party. - Reply to this comment
- I just want to have a beer with George W Bush.
...and no, I am not in town with the rocket scientist''s convention. - Reply to this comment
- 2 more banks.....here it comes America. Hang on!!
- Reply to this comment
- Why aren''t shareholders voting these chumps out for underperforming before banks collapse, like with Wachovia?
- Reply to this comment
- vnveteran,
You are correct, they are planning these things to kill us off. I want you to know I have been warned in dreams. I saw that some people just would NOT get sick. After several dreams, I understood: those whose faith is strong, they will not get sick.
We must fast and pray in this late hour to hear the voice of the Lord. - Reply to this comment
- p.s. don`t worry they can`t get blood from a turnip.
Posted by FuzzyBear9 at 07:34 PM : Jul 26, 2008--- You got it all right. My wealth is not in mammon,....its in things free for the asking (ask God) that my wife and I have done settled years ago. Teaching our kids in simple ways of the follies of our monetary system. Questions we asked them like,..."What do you eat for supper, dollars or food"? Sometimes they''d say. "Well Dad, you use dollars to buy food right"? Then I''d say,..."What happens when no one wants dollars anymore"? And then walk away for it to sink in a bit and later watch very closely their facial expressions. A follow up usually produced a favorable, maybe not perfect yet, answer......UGH! How it has tried my patients for their own benefit! It''s so hard to be the best Mom and Dad in the world,....but my sweet wife and I are trying our best. - Reply to this comment
- Final Solution through Domestic Bio-Weapons.
Posted by vnveteran72
Bird Flu? - Reply to this comment
- THE GREAT BUSH DEPRESSION IS HERE!!!!
People losing their homes, food and energy prices out of control, banks failing, the country''s infrastruture falling apart, credit non-existant, jobs "evaporating" with Big Business Corporations moving them to China, India, Europe, even Russia, and the American dollar WORTHLESS!
REMEMBER, The Great (and RICH) former economic advisor "Doctor Phil" Gramm, says this is all a delusion and we are all "whiners"!!!!
SIG HEIL, BUSH!!!!!
sig heil, TOTALLY MORE OF THE SAME, "SURGE" McCain!!!!! - Reply to this comment
Marshall Law before you know it, they''''re ready for it this time, the bastardos!
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Posted by Marshall_Nee at 07:23 PM : Jul 26, 2008
+ report abuse
Martial Law, FEMA Death Camps, Forced Population Reduction through Mass Genocide, Final Solution through Domestic Bio-Weapons. We are not Economically Viable to the Ruling Elite.
The Ruling Elite want the Planet to themselves, and we''re getting in the way. Think of it as Eminent Domain, but substitute Real Estate with Human Lives.
Time for the Revolution......- Reply to this comment
- Hello Betrayed Americans
Traitors , Treason, High Crimes and Misdemeanors.
all of the above.
well First National Bank insolvent !
and who`s money was in First National Bank ? some working guys.
and where did that money go ? stolen by white collar scoundrels. no charges have been pressed yet
who will replace that stolen money ? me out of my pocket in reality.
why ?
Traitors in High Places, Traitors to the American People, Traitors to the Free Enterprise System.
what will be done to bring the culprits to Justice ?
nothing.
nothing.
but we do have a Home Land Security that.
outlaws Acetylene Tourches to work class farmers and mechanics.
outlaws toothpaste and mouthwash at the airport.
carefully does background checks on American Citizens the only people we know are not responsible for 9/11.
grants amnesty to illegal invaders, and now social security checks.
no my freind the time for another Revolutionary War was 50 years ago.
sincerely still picking up the tab Bear
Fuzzy,
p.s. don`t worry they can`t get blood from a turnip. - Reply to this comment
- Time for a Revolution people......
Posted by vnveteran72 at 07:13 PM : Jul 26, 2008
Marshall Law before you know it, they''re ready for it this time, the bastardos! - Reply to this comment
- The Federal Reserve System operates by manipulation of what is sometimes referred to as the business cycle of economic expansion and retraction by putting new notes into circulation to increase the ease of obtaining credit, which devalues the currency, then compounds inflation by increasing interest (prime) rates. This manipulation, is responsible for a 96% devaluation of American currency since it was made possible to increasingly sever the link with gold backing by the Federal Reserve Act of 1913. This process of creating new money and adding it to the money supply is known as debasement and is a cause of inflation. In this way, the Federal Reserve System simultaneously controls the supply of money and its value.
The Federal Reserve System is unconstitutional and has maxed out the national debt and bankrupted the United States government.
Federal income taxes were imposed in response to, or as part of, the plan implementing the Federal Reserve System.
Federal income taxes are unconstitutional or otherwise legally invalid.
The use of the Federal income tax to counter the economic effects of the Federal Reserve System is futile.
Time for a Revolution people...... - Reply to this comment
