When the IndyMac bank collapse occurred in the Los Angeles area, we began feeling the heat of the banking crisis here in Hesperia. But last week, the collapse of Washington Mutual hit us at home. With a Wamu branch just blocks away from the Hesperia Star office, the banking situation is couldn't get any closer. Ironically, Wamu went into bankruptcy exactly 119 years after its founding.


Coming to the rescue was JP Morgan Chase, which is the second largest bank in the United State (Citigroup is No. 1).


Not surprisingly, Wamu's demise can be traced to the subprime mortgage crisis. The crisis grew as more people - including many in Hesperia - were forced to file foreclosure on their homes.


When word got out that Wamu's difficulties were getting worse, many account holders took out a portion, or even all, of their funds. Perhaps the most well-known example of "run on the bank" was in the movie "A Wonderful Life." Just before IndyMac Bank failed, customers withdrew an astounding $100 million a day.


The Federal Deposit Insurance Corporation insures up to $100,000 per account. But it's understandable that those with more than than in their accounts would get nervous. Hopefully the crisis will settle down and we won't watch another quality banking organization like Washington Mutual close its doors on Main Street.


POLITICAL NOTES


A fund-raiser was held last Wednesday evening for Brian Pierce, who is a candidate for the board of directors of Mojave Water Agency, District 3. The event was held at the home of Dennis and Paula Nowicki. Dennis is a former Hesperia mayor and city councilman while Paula Nowicki is the chief of staff for First District Supervisor Brad Mitzelfelt. Pierce is co-owner of Hunny Do Artificial Grass.


A fund-raiser will be held on Thursday, Oct. 2 for Chris Lindsay, who is a candidate for the Hesperia Unified School District's board of trustees. The event will be held at the Spring Valley Lake home of Lindsay's parents, Jack and Peggy Lindsay.