Columbian Bank and Trust Co. of Topeka, Kansas, was closed by U.S. regulators, the nation’s ninth bank to collapse this year amid bad real-estate loans and writedowns stemming from a drop in home prices.
The bank, with $752 million in assets and $622 million in total deposits, was shuttered by the Kansas state bank commissioner’s office and the Federal Deposit Insurance Corp., the FDIC said yesterday in a statement.
Citizens Bank and Trust will assume the failed bank’s insured deposits. Columbian Bank’s nine branches will open Aug. 25 as Citizens Bank and Trust offices, the FDIC said. Customers can access their accounts over the weekend by writing checks or using ATM or debit cards.
“There is no need for customers to change their banking relationship to retain their deposit insurance coverage,” the FDIC said.
I think that we should all thank Herbert Hoover for the concept of insuance for deposits. That is the reason this is merely a story and not a great wide-spread tragedy.
Yes, I know it was FDR that signed the thing into law but it was neither his nor his “brain trust”‘s idea.
Don