The uninsured deposits were not transferred to the newly chartered institution.

"Three thousand depositors have lost $58 million in uninsured deposits at our banks," he added.

About 270 accounts with $3.8 million of uninsured deposits will be paid 66 cents on the dollar.

About 500 accounts with uninsured deposits of $5 million will be paid 50 cents on the dollar.

And he added that the fate of $30 million in uninsured deposits has not yet been decided.

In 1992, depositors lost $200 million on uninsured deposits, up substantially from the year before.

Their other, uninsured deposits, by contrast, could be invested with relatively few restrictions.

In 1990 and 1991, only 8 percent of people with uninsured deposits lost money.

Cash management is a service that helps companies move their money between operations around the world and may involve very large uninsured deposits.

This run was being fueled by large institutions, including other banks, racing to electronically withdraw uninsured deposits.