OTHER NEWS - April 20, 1992

Pennsylvania Seizes Two Failed Banks: In a state-funded banking bailout, Pennsylvania seized two privately owned banks and said it expected to reopen them this week under ownership of the state government. The Pennsylvania Department of Banking last week seized Marian Bank in Philadelphia and Tobias Knoblauch Private Bank of Reading, Pa., saying both were unsound. The two banks had been insured by a state-funded but independent company, the Pennsylvania Deposit Insurance Corp. But the nonprofit PDIC, with only $4 million in assets as of last November, did not have enough money to protect depositors. The state plans to bail out the banks by using money from a state workers’ compensation insurance fund.