Las Vegas NowFDIC Spokesman Says More Nevada Banks Could Fail

FDIC Spokesman Says More Nevada Banks Could Fail

The slumping housing market isn't just taking a toll on homeowners. It's taking a toll on banks. Silver State Bank is the second Nevada bank to close its doors, but Monday a spokesman for the FDIC says it definitely won't be the last.

Eyewitness News talked to several people Monday who aren't sure where to put their money. They say choosing a bank is becoming more difficult, because they don't know who has the stability to make it through the bad economy.

One small business owner said he plans on doing a lot research before he makes any decisions.

For business owner Larry Nau, knowing where his money is at all times is a big part of his small business. For several years, he relied on Silver State Bank to be there but last Friday, they went belly up -- leaving Larry questioning what comes next.

"It's either the weather or the economy these days. I hope the people can answer my questions, because I'm sure I'm going to have some," said Nau.

He and dozens of others wasted no time getting those questions answered by Nevada State Bank -- the financial institution who took over.

"I just want to check how stable they are because I'm a golf cart dealer and I have a lot of money coming in and out all of the time and I want it to be available to me if I need it," said Nau.

But confidence in local banks may be suffering. Nobody know who's strong enough to make it through the bad economy and FDIC regulators expect more Nevada banks to go under.

"It certainly is a concern because it seems like the smaller banks put themselves in jeopardy in virtue of their loans and this bank is a good example," said Jim Besso, another Silver State Bank customer.

But the FDIC says it's not about the size of the bank -- it's about making sure your money is insured and is placed at an FDIC insured bank. With more banks expected to close, federal regulators say now is the best time to make sure you're covered.

"As long as you are within the insured limit, you have absolutely nothing to worry about. Silver State is a prime example of how the FDIC operates to protect your money," said David Barr, FDIC regulator.

And for Larry Nau, knowing his small business is safe lets him get back to business as usual.

Under the FDIC, your deposits are insured up to $100,000. Anything over can be covered but isn't always. The FDIC has a great tool online to figure out if your money and your bank is insured.