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Banking

BRIEFLY

November 16, 1992|From Times Staff and Wire Reports

FDIC Takes Over Bank That Had Depression-Type Run: The Federal Deposit Insurance Corp. took control of Metro North State Bank, which was hit last spring by a rare Depression era-like run on its deposits. The FDIC established a "bridge bank" for depositors, which will reopen today as New Metro North until a buyer for the Kansas City, Mo., bank can be found. The early-evening takeover of the bank resulted from an FDIC audit that determined that Metro North was insolvent. Last April, a strange mix of circumstances involving false rumors, a bank holdup and the recession sparked a rare run on the funds of the bank that was reminiscent of panic withdrawals during the 1930s.

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