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Failed banks reopen under new name

July 28, 2008 7:43:26 AM PDT
Two banks shut down by federal regulators reopened Monday under another name.First Heritage Bank based in Newport Beach, and First National Bank of Nevada based in Reno, closed Friday.

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Their customers will now be doing business at Mutual of Omaha Bank, and all deposits are protected, even those over the FDIC limit of $100,000.

First National Bank of Nevada had $3 billion in deposits, while First Heritage Bank of Newport Beach had $233 million. They accounted for only 0.3 percent of the total industry assets at about $8,500.

They are the two latest bank failures that were overwhelmed by problem loans. IndyMac was the biggest casualty of the mortgage crisis.

The FDIC is expecting more failed financial institutions by the end of the year, but no long lines are expected because all of the deposits are being covered by the new owner.

 

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