WaMu, Wachovia losses keep banking industry jittery

Washington Mutual and Wachovia posted staggering losses Tuesday as the head of the Federal Deposit Insurance Corp.

[Kathy]

Banks should not have given loans to people who couldn't afford them and the people who accepted the loans shouldn't have accepted them because they couldn't afford them. Now everyone has to pay.

[Reality Check]

If people don't panic and don't pull out their money, there won't be any problems -- it's a self- created crisis if it happens. Just check that your limits are FDIC insured, those have "never lost a dime."