MagnetBank, Salt Lake City, UT
January 30, 2009 – 2:38 pmSo far in 2009, the FDIC is keeping pace with its 2008 bank closure rate. MagnetBank of Salt Lake City, UT, became the fourth victim of the FDIC today. What is not typical is that an assuming institution could not be found, meaning that the FDIC had to step up to cover the insured deposits.
For more information see the FDIC web page.
An assuming institution could not be located; therefore, the FDIC will fulfill its obligation to insured depositors by mailing checks for their insured amounts.
Principal and interest on insured accounts, through January 30, 2009, are fully insured by the FDIC, up to the insurance limit of $250,000. You will receive full payment for your insured account. Certain entitlements and different types of accounts can be insured for more than the $250,000 limit. IRA funds are insured separately from other types of accounts, up to a $250,000 limit.
All interest bearing accounts that exceed the $250,000 insurance limit, and/or all interest bearing accounts that appear to be related and exceed this limit, are reviewed by the FDIC to determine their ownership and insurance coverage. If you think you might have uninsured deposits you should call the FDIC Call Center to arrange for a telephone interview with a Claims Agent at 1-800-822-0412. The Claim Agent may direct you to download and submit a particular form that will assist in expediting the processing of your claim.
Depositors will receive a check up to the insured amount of their accounts, and the FDIC will send a final statement. The bank’s website is down.
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