Hopes for an economic revival took a further hit in the US with news of troubled times in the banking sector. The latest bank to have collapsed is the IndyMac Bancorp, sending its depositors scurrying to get back their money. Even as other banks go into a customer-reassurance drive, it s seems unlikely that the public’s concerns about the safety of their deposits would die easily.

In the aftermath of the IndyMac’s collapse and the ensuing chaos, some and financial institutions have taken active measures to bolster the confidence of its depositors. They have asked tellers to reassure customers that their money is well-protected and have even come down heavily on those engaging in speculation about impending failure. Recently BankAtlantic, a regional bank based in Florida, sued an analyst for predicting that BankAtlantic Bancorp could also go the IndyMac way.

Along with banks, officials from the Federal Deposit Insurance Corp have also sought to clear the air of confusion. They insist that depositors have nothing to fear since there is federal guarantee behind every deposit up to $100,000 even in case of a bank collapse. However lack of correct information among bank customers and absence of transparency in the method of identifying shaky banks have repeatedly raised concerns among the general public.

-Kalyani Mookherji