Banks threatened with 'payback time'

WASHINGTON - Threatening letters sent this week to banks and financial institutions declare "It's payback time" and promise death within 10 days, the FBI said yesterday.

More than 50 letters mailed to Chase Bank branches and federal regulatory offices in 11 cities this week, most filled with white powder, have tested negative for any dangerous toxins.

But the FBI says the hoax is a serious crime and it is investigating the letters as a possible extreme backlash to the nation's financial crisis.

"Steal tens of thousands of people's money and not expect reprercussions," says the letter, which is written in all capital letters and includes the misspelling. "It's payback time. What you just breathed in will kill you within 10 days. Thank [name redacted] and the FDIC for your demise."

The FDIC stands for the Federal Deposit Insurance Corp.

The FBI would not identify the person whose name was deleted. A US official said the name is a person who might have played a role in the nation's financial crisis, but not a government official. The official spoke on condition of anonymity because he was not authorized to speak publicly.

Authorities said the letters appear to be from the same source, and were focusing on possible suspects near Amarillo, Texas, where the envelopes were postmarked.

The FBI released the text in hopes that the public will help lead investigators to the letter's writer.

Since Monday the letters have been opened in the offices of Chase Bank branches, the FDIC, and the US Office of Thrift Supervision, which regulates all federal and many state thrift institutions. They were sent to offices in or near 11 cities: Atlanta; Chicago; Columbus, Ohio; Dallas; Denver; Newark; New York City; Oklahoma City; Phoenix; San Francisco; and Arlington, Va.

An FBI spokesman said letters sent to Oklahoma were filled with calcium.

The US Postal Inspection Service has offered a reward of up to $100,000 for help in arresting the letter mailers. Authorities "are following several good leads, but we are always looking for more information," said FBI spokesman Rich Kolko.

ASSOCIATED PRESS