FDIC Takes Over 2 Western Banks

(AP)  Federal banking regulators closed 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California.

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."

[spadeisspade]

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 : )

[ddaryl1]

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.

[wl7bzh]

Hey Rush,

Don''t knock the people of Colombia-Juan Valdez is growing a new crop and it ain''t coffee.

[rushlimpdrug]

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.

[wl7bzh]

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
------------------------------------------------------


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.

[rudy654-2009]

To turn a blind eye to corporate thievery in the place of good governance


--------------------------------------------------------------------------------

Posted by Nancy_Naive at 10:25 PM

Exactly right.

[brianbwb-2009]

"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.

[brianbwb-2009]

"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.

[sparks224]

I apologize for that last post.
I feel bad for making fun of the re.tarded wing of the Republican Party.

[sparks224]

I just want to have a beer with George W Bush.

...and no, I am not in town with the rocket scientist''s convention.