FDIC Sued for Not Covering Deposits: The...
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From Times Staff and Wire Reports
FDIC Sued for Not Covering Deposits: The New York state attorney general has sued federal regulators for refusing to pay back some depositors in full after a bank in Harlem collapsed last fall. State Atty. Gen. Robert Abrams said the government should have covered the deposits of charities helping Harlem’s needy, which had entrusted their money to Freedom National Bank. At least 31 charities lost about $2.7 million when the Federal Deposit Insurance Corp. refused fully to cover deposits of more than $100,000 at the bank.
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