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Letters

New bank buries bad CD news

March 01, 2009

Re: Tom Petruno's markets column, "Hunt for safety yields hazards," Feb. 21.

I too had a certificate of deposit, yielding 4.5%, with Alliance Bank.

I received what looked like a standard letter from California Bank & Trust, stating that they were taking over the deposits of Alliance Bank and that my insured deposits were "safe and accessible."

I assumed that the CD would continue with the original conditions and interest rate, as had been the case with other bank takeovers.

Fortunately, I read the back page where it did say that the interest rate on my CD had been reset to 1.4% as of Feb. 17.

If California Bank & Trust were an ethical financial institution, this interest rate reduction should have been prominently displayed on the first page.

Edward Saraffian

Los Angeles

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