Here's a level-headed article What if Your Bank is Seized

ThursdaysChild said:Here's a level-headed article What if Your Bank is Seized

Thank you for the article. It also contains additional links with good information for families, all around. Bookmarked.

newsue how often do they update on the banks?

banks might be ok one quarter but not ok in the next quarter

ArmchairQB said:I say have a run and take them all down!

Shame on them for being leveraged to such an extent that it is obscene.

Here is an idea for you.

"Queues formed outside several branches across the southern Chinese territory before they opened with customers scrambling to empty their accounts after a text message rumour questioned the bank's stability."

Text message rumor caused bank run in Hong Kong

dragob said:IRAs are FDIC insured up to $250,000.
I added this info to the summary.

 

FDIC Consumer News
Special Bulletin (Revised September 2006)

What You Should Know About Higher FDIC Coverage for Retirement Accounts

**

1. Certain retirement accounts at FDIC-insured banks and savings institutions will be insured up to $250,000, up from $100,000 previously.


FDIC Special Bulletin - 2006

 

~

Under FDIC rules, bank deposits in self-directed 401(k)s and Keogh plans, Roth IRAs, SEP IRAs and SIMPLE IRAs that are owned by the same person are covered up to a combined total of $250,000.

Limits get a bit complex with employer-directed 401(k), employer-directed Keogh, pension or profit-sharing plans, but in general, money that is allocated to bank deposits in individual employees' accounts is insured up to $100,000. This is referred to by the FDIC as "pass-through" coverage.

It's important to understand that FDIC protection only applies to bank deposits in these retirement accounts. Investments such as stocks, bonds, mutual funds, ETFs and annuities that are sitting in these accounts are not covered. For example, if Joe Depositor has a 401(k) through his employer with a balance of $40,000, and 25 percent is allocated toward bank deposits, then $10,000 of Joe's 401(k) would be FDIC insured.

http://www.bankrate.com/brm/news/sav/19991116.asp

How many people have 401k's and/or IRA's with stocks, bonds, mutual funds, ETFs and/or annuities in them? Probably most people do. In my PepsiCo 401k the most conservative option is a money market FUND. There is no cash option or money market account option. Money market FUNDS are not covered.

Also I'm a bit worried about after tax annuities. I maxed out my 401k every year and had money left so I put it some of it into an annuity. The funds are in the "fixed" option which is backed by TIAA-CREF (if they go under my money is gone), they do still have a AAA rating I believe but that probably doesn't mean much.

Any thoughts? I mean besides google is your friend, did you read the whole thread, are you stupid and/or another random witty yet useless comment.

edit: I also noticed that in PayPal business accounts money is held in a money market FUND. Not that I ever trusted them anyway or keep money there.

New Temporary FDIC Limits

Basic FDIC Deposit Insurance Coverage Limits* Single Accounts (owned by one person) $250,000 per owner**

Joint Accounts (two or more persons) $250,000 per co-owner**

IRAs and certain other retirement accounts $250,000 per owner

Trust Accounts $250,000 per owner per beneficiary subject to specific limitations and requirements**

* These deposit insurance coverage limits refer to the total of all deposits that an accountholder (or accountholders) has at each FDIC-insured bank. The listing above shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

** The legislation authorizing the increase in deposit insurance coverage limits makes the change effective October 3, 2008, through December 31, 2009.

There are a fews banks I wouldn't mind seeing go under BofA in particular. Can we please all go do a bank run on them?

If I open a CD with a bank in trouble (Corus), what happens if the bank goes under?

Aside from getting my money, does it come directly to me (CD broken) or do I get the same cd at another bank

welookgoodcom said:If I open a CD with a bank in trouble (Corus), what happens if the bank goes under?

Aside from getting my money, does it come directly to me (CD broken) or do I get the same cd at another bank
I just did my second jumbo with Corus, was a bit nervous of this since I want to lock for a year and worry if something happens it gets broken. Figured it's worth the chance, Between the bail out and rate cut they should make it. They have a long history and I think they will make it. Also have done a few CDs with over the years and find them to be excellent. Once you do online application your rate is locked for 5 business days to fund, So I would do it before they lower and you could change your mind and not fund