Federal Officials Take Over Banks Rather Than Pay Insurance Claims.

     The Federal Deposit Insurance Company has exercised power not to pay depositors insurance claims, by instead taking over the banks where the depositers had their money.  The banks will now be run by another bank entirely, apparently as a gift from the FDIC.  The authority if any for the actions taken by the FDIC in these cases is not entirely clear.  The actions themselves are reported in a story copyrighted by the Associated Press, by Brendan Riley, "FDIC Takes Over 2 More Banks, Closing 28 Branches" (washingtonpost.com, Saturday, July 26, 2008)., which was substituted with this article on the washingtonpost.com site, written by Amanda Lee Myers, Associated Press, "No Angry Lines of Customers After Bank Takeover" (washingtonpost.com, Sunday, July 27, 2008).

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