News

Most banks in hurricane areas operating

September 8, 2005

Associated Press:Most of the 280 financial institutions in hurricane-stricken areas have reopened branches and are operating normally again, and they're not expected to have financial problems in the long term, regulators said Sept. 8. Louisiana, Mississippi and Alabama are dotted with small, community banks. There is a fear that some customers in affected areas could pull their accounts and put their money into bigger, national banks."There is a fear that these banks might go under" and that could prompt depositors to withdraw their funds from them, said Rep. Barney Frank (D-Massachusetts), the senior Democrat on the House Financial Services Committee, said in a telephone interview.