In the wake of news that seven Colorado community banks are under federal enforcement orders for violating laws and regulations, the state’s acting banking commissioner sought Wednesday to assure the public that the vast majority of state banks are healthy.
Fred Joseph, who doubles as securities commissioner, stressed that every bank in the state is federally insured, fully covering deposits up to $250,000 — a fact that should preserve public confidence in banks, he added.
“Ninety percent of people here are within that insured limit,” Joseph said. In a worst-case scenario, one or some of the troubled banks likely would merge with another bank instead of closing, he said.
Colorado hasn’t had a bank failure since the 1990s.
A permanent replacement for former Commissioner Richard Fulkerson — whom Joseph has replaced — is expected to be named soon by Rico Munn, the executive director of the Department of Regulatory Agencies.
Residents concerned about their bank deposits can get more information at . Miles Moffeit, The Denver Post
