Two latest collapsed US banks avoid IndyMac-style panic run
Customers of two banks closed by federal regulators in the US on Friday were assured over the weekend that every penny of their money was protected, preventing lines of angry accountholders from forming.
The calm response was a stark contrast to the hundreds of angry customers who waited for hours earlier this month in Southern California to demand their money after IndyMac Bank’s assets were seized.
The 28 branches of the First National Bank of Nevada and First Heritage Bank — owned by Arizona-based First National Bank Holding — were closed Friday by the Federal Deposit Insurance Corporation (FDIC). First National Bank of Nevada also operates as First National Bank of Arizona.
But Mutual of Omaha Bank bought all the two banks’ deposits, even those over the amount protected by FDIC insurance limits. IndyMac customers had to take a loss on whatever sum they had in the bank over the insurance limits.
One First National Bank of Arizona in downtown Phoenix didn’t even have a note outside to tell customers about the trouble Saturday. But there were no customers outside to tell.
“I feel like the Maytag repairman — there’s just not much to do on the customer side of things,” said a spokesman.