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OCC BROCHURE ALERTS BANK CUSTOMERS TO MUTUAL FUND RISKS

 WASHINGTON, Nov. 29 /PRNewswire/ -- The Office of the Comptroller of the Currency (OCC) today released a new brochure designed to alert bank customers that mutual funds are not insured by the Federal Deposit Insurance Corporation (FDIC) -- even when they are sold by banks. The OCC developed the brochure, titled "Deposits and Investments: There's a Critical Difference," because it is concerned that many consumers do not understand that the risks associated with mutual funds, annuities or other investments that are now sold by banks.
 "The problem is that the public has come to believe that everything at a bank is safe because of federal deposit insurance," said Comptroller of the Currency Eugene A. Ludwig in a cover letter describing the brochure to national banks. "I'm concerned that many consumers still do not understand that they can lose money on mutual funds that they buy from commercial banks."
 "Deposits and Investments: There's a Critical Difference" explains in plain English the critical difference between insured deposits and mutual funds, annuities or other investments. Unlike deposits, these investments are not insured by the FDIC, are not guaranteed by banks, are not obligations of banks and carry some investment risk, including loss of principal. The brochure also:
 -- Describes the role the government plays in regulating deposits
 and investments;
 -- Explains investment products, programs and fees charged by some
 banks;
 -- Offer tips for first-time investors; and
 -- Provides guidance to customers who have a problem or want to find
 out more about investments.
 The OCC mailed copies of the brochure to all national banks and encourages bankers to use similar information in their own marketing programs for investment products. Consumers can obtain a free copy of this brochure by writing to the Consumer Information Center; P.O. Box 100; Pueblo, Colo. 81002.
 -0- 11/29/93
 /CONTACT: Office of the Comptroller of the Currency, 202-874-4700/


CO: Office of the Comptroller of the Currency ST: District of Columbia IN: FIN SU:

DT-DC -- DC013 -- 8233 11/29/93 11:19 EST
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Publication:PR Newswire
Date:Nov 29, 1993
Words:331
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