Bank taking back deposit?

I had $1,040.00 in my checking account. I put in a check for 1,950.00. the next day it cleared. I withdrew the exact amount of the check i deposited. this means the check has cleared. why else would the bank let me withdraw more then i could cover. 5 days later the check was returned insuficient funds. if the bank released the funds to me they must of got the wire transfer from the other bank, being i only had $1040.00 in there at the time. can they do this. since when does a bank let you withdraw on funds that are not there. i do not overdraft protection|||Yes the bank can do this.I work for a national bank so let me try to explain.When you deposited your check most banks give you the credit for the deposit on good faith that this will be a check that will be good.The only exception to this is if your account is brand new.Sometimes it takes banks processing to get paid for the check up to 7 to 12 days which is called REG cc deposit holds in which they are trying to get paid on the check. If the check does not get paid by the bank its drawn on then they return it to you. If you have taken money out of your account then your bank will expect you to make good on the overage as they ex tented you the right to use the money on good faith. Note the issue lies with the person who gave you the check for 1950.00 if that check is no good then they caused all of this and should pay you any fees that your bank charged as the check should have been good. Also overdraft protection is key here this would save you any fees down the line.Good Luck