The FDIC(Federal Deposit Insurance Corp) has seized two more banks on Friday. First National Bank of Nevada and First Heritage Bank NA of California closed their doors after their investigation found that First National, had total assets of $3.4 billion and $3 billion in deposits. First Heritage, had assets of $254 million and $233 million in deposits. The FDIC stated that the two banks will open on Monday, but as Mutual of Omaha Bank. Mutual of Omaha Bank is one of the few that won’t be going anywhere soon. They are a subsidy of Mutual of Omaha, the 99-year-old insurance company(do you remember, Mutual Of Omaha’s Wild kingdom?) that have assets that total $19 billion.
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Warnings of more closures are expected, according to top regulators, but not to the size of IndyMac.
Last week the FDIC closed IndyMac after they found that they were under-capitalized as well.
Where will this end? Stay tuned and find out.
The one good thing out of these two banks were that they weren’t publicly traded, as well as Mutual Of Omaha.
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