MOUNT VERNON — In the wake of President Bush’s call for immediate action on a bailout plan for the U.S. economy, and the plan’s failure in the House on Monday, local banks are trying to quell a sense of panic among many customers.
“People reacted to a lot of noise in the public and that creates a little panic,” said Jesse Marlow, vice president of First-Knox National Bank.
One of the most important aspects of dealing with money, according to Marlow, is to take emotion out of the decision-making process.
“We try to combat the flurry of information on TV with information for our customers,” Marlow said. “What you hear [on TV] is the truth, but not the whole truth.”
Although understanding what Federal Deposit Insurance Corporation means can be complicated, Marlow said it does serve as a safe haven for individuals and their cash assets.
“As a depositor, you have to have your money insured,” said Marlow. “You need to understand FDIC. No [individual] has ever lost money with FDIC.”
Although that protection holds true for individuals who understand the process, Marlow said businesses don’t necessarily have the same protection as individuals.
For those uncertain as to whether their money is safeguarded, Marlow encourages anyone with bank deposits to speak directly with his or her banker.
“If people come into our bank and want to take out their money, we talk with them. We explain FDIC. We don’t want you to take your cash and bury it in the backyard,” he said.
Gene Jackson, area president at National City Bank, said National City has seen great strides in the company in the last several weeks, and said that resurgence continued despite Monday’s drop in the stock market and the bailout failure.
“National City grew its balances yesterday. We took in more money than we took out,” Jackson said.
As with First-Knox, Jackson confirmed that many customers were seeking information in regard to the security of their deposits.
“We did have people asking about FDIC,” he Jackson.
Although National City stock dropped 63 percent on Monday, closing at $1.36 a share, the company holds firm to its belief that it remains solvent.
“We believe recent performance of our stock reflects the extreme volatility of the financial services market as the result of an irrational perception, fed by unfounded and inaccurate speculation in the media, comparing us to Washington Mutual and Wachovia,” National City officials said in a statement provided by Jackson.
Although Knox County is a long distance from Wall Street, there is comfort available for those with reservations about the banking industry.
“Sit down with your banker eyeball to eyeball and make sure you understand [your concerns] to the best of your ability,” Marlow said. “Everyone can get comfort and understanding in your local area.”
