As First National and Other Bank Failures Surge, Should You Make a Run for Your Money?

First National Bank of Nevada and First Heritage Bank were shut down Friday. They have various operations in Nevada, Arizona and California. With bad news also coming out about IndyMac as well as a total of at least seven banks failing this year, many are feeling nervous, especially with predictions that bank failures may be set to soar this year.

But before you give in to the temptation to make a run to the bank for your money, make sure you know the facts. Stay informed. I'll have a list of related articles at the end of this article to bring you up to speed on the Housing Crisis and home foreclosures and how they tie into to bank failures. For now, however, here is what you need to know about the latest closings of First National Bank and First Heritage Bank and what that means for you - even if you don't have a single cent in these particular banks.

First National Bank, IndyMac and other bank failures - why so many banks are going under and what it means for you

When you open the paper and see headlines about bank failures like that of First National Bank, perhaps you start to feel some anxiety. I know I do and I wonder how well my bank is doing and whether my money is protected. It helps to understand how many banks are failing - and why. At least seven banks have failed this year and three of those banks had more than $1 billion of assets. First National had an estimated $3.4 billion in assets. That was small potatoes compared to the reported $32 billion in assets owned by IndyMac of Pasadena, California, which holds the position for third-largest bank failure in American history.

Some banks fail every year but the reasons vary. These recent bank failures are primarily tied to housing, home foreclosures and questionable home loan practices. They have to do with the so-called mortgage meltdown that inevitably followed the great housing boom and seemingly endless rise in home prices.