WASHINGTON -- As one bank in California suffered death throes,some depositors throughout the country decided it was time for acheck up.

Federal regulators' decision to seize the California-basedIndyMac Bancorp, one of the largest bank closings in Americanhistory, prompted regulators and credit union trade associations togo to great lengths to assure members that their deposits areinsured.

NCUA Director of Public and Congressional Affairs John McKechniesaid the agency had received an "increased number of inquiries," onwhether credit union deposits were insured. He said those inquiriesprompted NCUA Chairman JoAnn Johnson to issue a statement lastMonday stating that all deposits are insured up to $100,000, withcoverage of up to $250,000 for some retirement accounts.

She added that the National Credit Union Share Insurance Fund'sequity ratio is estimated at 1.24% as of June 30. When the equityratio reaches more than 1.3%, credit unions can receive a dividend;when it falls below $1.2%, the agency must assess a premium to thecredit unions to bring it back above 1.2%. NCUA is currentlypredicting the equity ratio to end the year at 1.29%.

Regulators of financial institutions in several states also tooksteps to reassure consumers. In Pennsylvania, officials of thestate Banking Department did several television interviews onMonday to calm the public's nerves.

"In general, the banking industry in Pennsylvania is doingwell," Pennsylvania Department of Banking spokesman Dan Egan toldWHTM-TV in Harrisburg. "This is a difficult economy for a lot ofbanks and earnings are a little down, but there are no banks thatare in imminent danger of failing in Pennsylvania as far as weknow."

The television reports caused a trickling of phone calls tocredit unions from members who were concerned, said Mike Wishnow,senior vice president of communications for the Pennsylvania CreditUnion Association.

In turn, the association received "a couple of calls" fromcredit unions seeking a simplified explanation of how the insurancesystem works so they could explain it to their members.

Credit union leagues in Louisiana, Oregon and Wisconsin wereholding seminars and sharing information for credit unions aboutthe workings of the insurance system.

At the Louisiana session, which was run by NCUA insuranceanalyst Deborah Spearing, attendees were taught how to determinecoverage levels for various accounts and also took an online tourof the NCUA Share Insurance Estimator, which provides estimates andexplanations of insurance coverage.

First Capital Federal Credit Union is using the concerns aboutthe soundness of financial institutions to promote the fact that itprovides deposit insurance above the NCUA's.

First Capital Federal Credit Union of York, Pa., sent out a newsrelease saying it is one of 13 credit unions in the state, and theonly one in York County, that offers Excess Share Insurance. Thismeans that the credit union offers up to $250,000 worth ofadditional insurance for those accounts over $100,000. ESI is anarm of American Share Insurance, the last private primary insuranceprovider.

Consumer concerns about the safety of their deposits has sparkedan increase of inquiries to Excess Share Insurance.

Dennis Adams, the president and CEO of the company and itsparent American Share Insurance Co., said it had received about 60calls from credit union members asking for information about theextent of their coverage, which covers up to $250,000 beyond NCUA'scoverage.

"It's giving people comfort,'' he said when consumers find outthat their credit union has the additional insurance. "We'regetting lots of positive feedback.''

The company provides insurance above NCUA's to 388 credit unionsin 33 states.

Adams said the company's marketing department has received seveninquiries this week from credit unions who want to apply for theadditional insurance.

The 19,000-member First Capital credit union has offered theinsurance since February 1997.

IndyMac, which was once part of leading subprime mortgage sellerCountrywide Financial Corp., was seized by the FDIC on July 11after customers withdrew $1.3 billion over a two-week period in theaftermath of the release of a letter by Sen. Charles Schumer(D-N.Y.) to federal regulators that raised concerns about itssoundness.

Most of the bank's deposits were insured, but pictures ontelevisions and in newspapers of people lining up asking for theirmoney triggered concerns.

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