Salt Lake Telegram | 1933-10-17 | Page 5 | Explains Bank Guaranty Plan

I EXPLAINS BANK GUARANTY PLAN Director of Federal Deposit Insurance Body Addresses Address s Utah Financiers Under the Federal Deposit I i nee nce corporation in the event c a bank banic closes deposits will be ma made e immedIately imme imme- available E. E G. G Bennett o of Ogden a director of ot the corporation told Utah bankers meeting at th the thc Hotel Utah Monday night The gathering to hear Mr Bennett who is on leave as vice VIce president and general manager of the First Se Security corporation explain workings of the new federal agency was sponsored sponsored spon spon- by the Utah hankers Bankers association tion and was presided over by the asso association president H H. E. E Hemingway Heming Heming- way president of the Commercial Security Security Se Se- bank of ot Mr Bennett said that business busine of ot a closed institution would be bo taken ov over r by other banks in the community r immediately after closing and and in event th the closed bank is Ls the only one cne in the community the Insurance corporation operations will permit reorganization reorganization re re- re- re organization as a going institution Even the first guaranty on January Janu Janu- ary 1 1 for deposits up to 2500 will provide insurance against any stoppage stop stop- I page pageo of buying power he said and ond explained that after atter that date guaranties guar j will go up to deposits j on July 1 1 75 per cent guarantee ber between be be- bej j r tween and 5 pod hind 50 I IF F per er r cent guaranty on more than I f oooo OO He praised the thc efforts of ot J. J F F. T T. OConnor O'Connor comptroller of the he i C oJ currency currency cur cur- rency and Walter Vatter J. J Cummings fellow fellow fel fel- fel- fel low directors in speeding up the corporation cor- cor corporation cor cor- so it jt will be in operation July 1 1 1