http://www.y2knewswire.com states that the Firt National Bank in West Virginia has failed and that the bank is closed. Has anyone seen the article or know what led to their shutdown?

-- Nancy (nomoney@bank.com), September 03, 1999

Answers

http://dailynews.yahoo.com/headlines/local/state/west_virginia/story.html?s=v/rs/19990902/wv/index_1.html#1

Bank In Keystone Shut Down By Feds - (KEYSTONE) -- A McDowell County bank has been shut down by federal agents after evidence was found of alleged fraud that resulted in the depletion of the bank's capital. The action was taken against the First National Bank of Keystone yesterday with the Federal Deposit Insurance Corporation named as the receiver. The Office of the Comptroller of the Currency found 515-Million dollars in loans carried on the bank's books that should have been removed after they were secured and sold. The F-D-I-C is attempting to arrange a transaction under which the failed bank's insured deposits will be assumed by a healthy bank no later than next Tuesday. If the effort proves unsuccessful, the F-D-I-C will move immediately to make available depositors' funds of up to the statutory insurance limit of 100-thousand dollars.

-- c (nomoney@bank.now), September 03, 1999.

From an article in another source which I have forgotten, it looks like they double booked a few loans, and some of the money went where it ought not have, and well, since loans are assets and deposits are liabilities, the two didn't QUITE match and........

Chuck

-- Chuck, a night driver (rienzoo@en.com), September 03, 1999.

nice try fdic

lets see howm many other "frauds" occur in the next three months

ommitting of course the usa gift via the imf of all our tax dollars to ten fat russians and 100 russian whores...nah, make that 10 whores, 90 from NYC...

-- Andy (2000EOD@prodigy.net), September 03, 1999.

Its true that the first national bank of Keystone in Wes Virginia has been shut down. I live near it. They are supposed to let everyone that had a check direct deposited on the first or after be picked up. What I wonder is, What about the rest of their money? If most of these people are on fixed income, most of their money is spent just trying to pay their bills month to month. How can they afford to pay this months bills and probaby had checks wrote on whatever balance that they already had in the bank. My parents are on social security, and sometimes have to save a couple of months just to pay their house insurance or to buy some other necessity, such as a hotwater heater. How will they survive till the government reimburses them? Also, what amount do you get back on federal insured deposits? One dolar on each hundred?

-- Linda (hillgirl@webtv.com), September 03, 1999.

Linda:

The promise is that insured funds are made whole up to one hundred thousand dollars.

The one to one hundred ratio you mentioned refers to the fact that the FDIC has one dollar on hand for every hundred they insure.

One bank fails, no problem. There is more than enough money on hand to make the depositors whole.

-- Tom Beckner (tbeckner@xout.erols.com), September 03, 1999.

This is all the more reason NOT to have direct deposit and to keep enough cash on hand for emergencies. We'll be seeing more bank failures before the years over.

-- bardou (bardou@baloney.com), September 03, 1999.

LOTS more bank failures. Get your money out now, I've got mine.

-- Dan G (earth_changes@hotmail.com), September 03, 1999.

I'll be watching this one with interest as (though I doubt it) it might give us some clue as to how FDIC will/might handle future bank failures/closures next year. How long will it take FDIC to make good on bank customer insured losses? Days, weeks, months?

Think this may be important so if you find furthur info on this post it to the discussion at some future date. IF the FDIC drags this compensation cycle out and this response was to become common knowledge there could be a lot more folks lining up at the bank teller windows getting their money out later this year. Perceptions are everything at times....

DCK

-- Don Kulha (dkulha@vom.com), September 03, 1999.