Kansas Company Considers Layoffs Among Bank Closing

By: AP
By: AP

TOPEKA, Kan. (AP) _ A suburban Kansas City energy company is considering layoffs after the closure of a bank where it had 2 million dollars deposited.

Reid Scofield is CEO of Overland Park-based Sterling Energy. He said he might have to lay off 75 percent of his 15 workers because of a cash-flow crunch.

The Federal Deposit Insurance Corp. insures up to $100,000. But it has offered to pay 50 cents on the dollar of uninsured portions of bank deposits at California-based IndyMac Bank and Florida's First Priority Bank.

Scofield and others question why that's not the case so far at Topeka's Columbian Bank and Trust Company. Federal regulatorsclosed that bank August 22nd as it was struggling with losses on soured real estate loans.

FDIC spokesman Dave Barr said the policy hasn't changed and decisions on advance payments are made on a case-by-case basis.

The office of Kansas Senator Pat Roberts is looking into Scofield's concerns.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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