Another US bank collapses

The FDIC has agreed to assume all of Heartland Tri-State's deposits to protect customers.

The agency also entered into a takeover agreement with Dream First Bank, another Kansas bank.

The FDIC has agreed to take over all of Heartland Tri-State's deposits to protect customers. Photo: Reuters

That means four Heartland Tri-State Bank branches will reopen as Dream First Bank branches on July 31.

The earlier closures of First Republic, Silicon Valley Bank and Signature Bank sent shockwaves through the banking industry, forcing lawmakers to enact new laws to protect customer deposits and stabilize the financial system.

Heartland Tri-State customers can withdraw their money via check or debit card, the FDIC said, and they won't have to switch banks because they'll automatically become Dream First Bank customers, CNN reported.

Existing loans are also not affected because the FDIC and Dream First Bank have signed an agreement to share losses and share responsibility for the ability to collect the debt.

According to the FDIC, Heartland Tri-State Bank had total assets of about $139 million and total deposits of about $130 million. Dream First Bank also agreed to purchase “substantially all” of the failed bank’s assets.

Spring Mai

Source: https://nld.com.vn/thoi-su-quoc-te/them-ngan-hang-my-sup-do-20230729223020506.htm