National.

The House Banking Committee's financial institutions subcommittee is scheduled to meet Thursday to examine the conflicting claims of states and federal bank liquidators over abandoned deposits in failed depository institutions.

Under most state laws, abandoned property at banks and thrifts is turned over to state treasuries. Property is considered abandoned when bank or thrift officials are unable to locate the owner for a period of several years.

Conflicts over abandoned property have arisen in the case of failed banks and thrifts. The Federal Deposit Insurance Corp., Resolution Trust Co., and state treasuries have all laid claims to abandoned property at institutions that have failed.

The subcommittee's hearing will highlight testimony from the federal Treasury Department, the FDIC, the RTC, and the National Association of State Treasurers.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER