The FDIC has announced that two more banks failed yesterday, bringing the total this year to seven. 1st National Bank of Nevada and First Heritage Bank operate a total of 28 branches in Nevada, Arizona, and California. Neither of these banks was included in the list of the top ten banks likely to fail.
Account holders in these two banks will be able to access their money through check writing and ATM withdrawals throughout the weekend, even beyond the FDIC limits.
On Monday, the two banks will be known as “Mutual of Omaha Bank” and customers will have access to their full balances. The ease of the takeover operation brings to mind the idea that “money” is often nothing more than data bits. A computer at a bank where I hold an account keeps a database record with my balance, and that database record can be moved from one place to another. “Money” as we know it isn’t involved in the slightest.
FDIC shutters two more regional banks, CNN Money, July 26, 2008
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7:26 am (reply)
This is going to be interesting on how all of this shakes out with the banks. No doubt there are going to be more banks being shut down.