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VANGUARD SAVINGS BANK CLOSED; 'YOUR MONEY IS SAFE' CENTRAL FUND TELLS DEPOSITORS

 VANGUARD SAVINGS BANK CLOSED;
 'YOUR MONEY IS SAFE' CENTRAL FUND TELLS DEPOSITORS
 BOSTON, March 27 /PRNewswire/ -- In the wake of the Commonwealth's seizure this afternoon of the Vanguard Savings Bank, the fund that insures bank deposits in excess of $100,000 moved quickly to assure customers that their money is protected.
 The Mutual Savings Central Fund insures all deposits in excess of the $100,000 Federal Deposit Insurance Corporation limit in the Vanguard Savings Bank. The insured amount includes accrued interest calculated through the close of business today.
 Central Fund President Leonard Lapidus said, "The Central Fund wants to assure every Vanguard Savings Bank customer that any deposits over $100,000 they have in the bank are fully protected. Deposits will be available without interruption when former Vanguard Savings Bank offices reopen for business on Saturday, March 28 as branches of Fleet Bank of Massachusetts.
 "In the insurance fund's 58 year history, no depositor of a member bank has ever lost a cent when their bank has failed. Vanguard Savings Bank customers will be no different," he added.
 Vanguard Savings Bank has eight offices in the following communities: Holyoke, South Hadley, Springfield, Northampton, West Springfield and Greenfield.
 It is estimated that there are 314 accounts in the Vanguard Savings Bank with deposits over $100,000 totalling $9.1 million. Lapidus said that the Central Fund has made a payment of $2.3 million to the FDIC to facilitate the assumption of these deposits by Fleet Bank of Massachusetts. The payment represents the money that depositors would have lost if the excess deposits had not been insured by the Central Fund.
 The Central Fund's actual liability will be determined within 60 days, and the fund's payment to the FDIC will be adjusted accordingly.
 The Mutual Savings Central Fund manages the Deposit Insurance Fund (DIFM). The Central Fund is a private, industry-sponsored, mutual deposit insurance company that was created by the state legislature in 1932. All state chartered savings banks must, by law, be members of the Central Fund.
 -0- 3/27/92
 /CONTACT: Jennifer Watson of McDermott/O'Neill & Associates, 617-261-2200, for Vanguard Savings Bank/ CO: Vanguard Savings Bank ST: Massachusetts IN: FIN SU:


EG -- NE009 -- 2455 03/27/92 15:29 EST
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Publication:PR Newswire
Date:Mar 27, 1992
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