
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, February 12, 1991                   TAG: 9102120104
SECTION: BUSINESS                    PAGE: B6   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

ROANOKE PUTS FUNDS IN SIGNET

Roanoke Treasurer Gordon Peters deposited $7 million in city funds in Signet Bank - after withdrawing the money last week from CorEast Savings Bank - saying Signet offered the highest interest rate.

Some city residents have questioned why he chose Signet. The funds were withdrawn from CorEast as a precautionary measure after federal banking regulators took control of the thrift.

Peters said Monday that he got competitive bids on interest rates before putting the money in Signet.

He withdrew the money because he wasn't sure of the type of collateral CorEast had posted with state treasury officials to secure public deposits.

Peters said his action was "no reflection on the Federal Deposit Insurance program" that guarantees deposits for CorEast customers. The city's funds were not covered by the FDIC guarantee because they exceeded $100,000.

The move caused the city to lose $30,500 in interest and $11,000 in principal because of the early withdrawal of three certificates of deposit.

The city divides its money among banks or other financial institutions and seeks competitive bids on investments. - Staff report

by CNB