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Friday, December 12, 2008
Haven Trust Bank, Sanderson State Bank Collapse
FOXBusiness
Two more banks collapsed under the pressure of financial volatility Friday.
Georgia-based Haven Trust Bank was closed by regulators and seized by the Federal Deposit Insurance Corporation. North Carolina-based Branch Banking and Trust will assume all of Haven Trust’s $515 million in deposits and a small $55 million share of Haven Trust’s assets.
It is estimated that the closure will cost the FDIC $200 million.
All four of the bank’s branches will reopen Monday under the name of Branch Banking and Trust and customers will continue being insured by the FDIC. Additionally, customers will be able to continue using ATMs and writing checks as usual over the weekend.
The relatively smaller Texas-based Sanderson State Bank was closed by Texan regulators and acquired by Pecos County State Bank.
Pecos will acquire all of Sanderson’s $27 million deposits and a $3.8 million share of its assets. As is the case with Haven Trust Bank, customers will continue to be insured and have access to their money over the weekend. Sanderson’s only branch will reopen Monday as a Pecos branch.
The Sanderson closure is estimated to cost the FDIC $12.5 million.
Customers can contact the FDIC for more information about the closures.
Haven Trust: (866) 782-1402 until 9 p.m. EDT Friday evening, and Saturday from 9 a.m. to 6 p.m.
http://www.fdic.gov/bank/individual/failed/haventrust.html
Sanderson: (866) 782-1766 until 9 p.m. Friday evening, and Saturday from 9 a.m. to 6 p.m. CST
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FOX Translator
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If you've seen TV footage of an active trading pit, you've probably noticed the atmosphere is uproarious and wild. The reason for all the shouting? Open outcry.
On exchange floors that use the open-outcry system, traders shout prices they want to sell while others yell back the price they want to buy at. They also use hand gestures to communicate with each other.
This system has been used for a long time, but is being replaced with modern technology. Some argue electronic exchanges can do the job faster and more accurately. One of the few exchanges that continue to use open outcry is the New York Mercantile Exchange.
