Tulsans Worried About Wall St. Meltdown

By Chris Wright, News On 6

TULSA, OK -- The financial meltdown on Wall Street continues to raise concerns on Main Street. But some Green Country banks say their customers should take a deep breath, and have faith in their financial institution.

This crisis can be confusing for those who are not financially-savvy. But experts say as long you do your business at a commercial bank, you should be alright.

The collapse of Lehman Brothers, the buyout of Merrill Lynch and the bail-out of insurance giant AIG have everyone on edge about the economy.

"There's really no control over it so I think it could go a lot worse than it is now," said one Tulsan.

"I'm hoping for a recovery. Hopefully after the election we'll have a bit of a recovery," said another Tulsan.

Customers have been expressing similar concerns at Summit Bank all week. But unlike Lehman Brothers, Summit is a commercial bank, not an investment bank.

"We basically are built to serve Main Street. They are built to serve Wall Street," said Summit Bank CEO Wade Edmundson.

Like most banks in Green Country, Edmundson's makes its money by taking deposits from customers, and using that capital to make loans to local businesses.

On the other hand, Lehman and other investment banks engage in more risky activity. Those institutions invest their client's money in stocks, bonds and other ventures. Investments in toxic sub-prime mortgage loans have lead to their downfall.

Edmundson says the confusion between the two is understandable.

"We try to tell them it's a commercial bank here. It's not the fancy stuff you're reading about in Wall Street in New York City that are having so many problems," said Edmundson.

Commercial bank accounts also have the added advantage of being insured by the FDIC for up to $100,000. Summit says all this means the average Oklahoman shouldn't be losing any sleep.

"Banks are really as healthy as their local economy, and fortunately Oklahoma's economy is pretty healthy," said Edmundson.

Summit Bank says if you are lucky enough to have more than $100,000 in your account, there are ways to get that money insured by the FDIC, you just need to talk to your banker.