Federal regulators on Friday defended their decision to pay 50 percent of the uninsured balances at a failed Harlem bank whose depositors are pressing for a full refund.

The Federal Deposit Insurance Corp. insures accounts up to $100,000. But many charitable and non-profit groups deposited much larger sums at Freedom National Bank.Some of the groups had multiple accounts at the nation's fourth-largest black-owned bank, and were surprised when the FDIC lumped the accounts together, leaving them with hundreds of thousands of dollars in losses.

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