Colorado National Bank, Colorado Springs, CO

After a week off the FDIC caught its breath and is active again, closing three more troubled banks after the close of buisness today. Colorado National Bank, CO, became the 19th bank closed by the FDIC in 2009.

Federal regulators this afernoon seized Colorado National Bank, CO, the first local bank failure in nearly 20 years, and sold it deposits to Herring Bank of Amarillo, Texas, which will reopen Colorado National’s former branches in Colorado Springs, Monument and Peyton on Saturday.

For most consumers, the transition will be seamless with the new bank processing all pending transactions, including checks, direct deposits and loan payments. No deposits are at risk or will be lost. All deposits in any bank are insured up to $250,000 by the Federal Deposit Insurance Corp., a federal agency that will keep all of the failed bank’s loans and eventually sell them off to investors along with the bank’s foreclosed real estate.

Depositors of Colorado National will automatically become depositors of Herring Bank. Deposits will continue to be insured by the FDIC, the FDIC said today.

Over the weekend, depositors of Colorado National can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual, the FDIC said.

Check the official FDIC web page for more details.

<>

Posted in FDIC FAILED BANKS | No Comments »