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Old    Barry Waste (barry)      Join Date: Apr 2002       01-17-2010, 2:14 PM Reply   
With numbers like 400 being thrown around in relation to the number of banks expected to close by the end of the year..Might want to check your banks rating.

http://www.thestreet.com/bank-safety/index.html?src=ratingsindex&tab=3
Old    Wes (pesos)      Join Date: Oct 2001       01-17-2010, 2:39 PM Reply   
C- (Wells)
Old    Barry Waste (barry)      Join Date: Apr 2002       01-17-2010, 2:42 PM Reply   
I bank with Edward Jones Investments with uses PNC bank..Mine is pretty much the same, Wes.. C
Old    A. P. (bigdad)      Join Date: Apr 2002       01-17-2010, 3:12 PM Reply   
My wife works for the Federal Reserve Bank. I can tell you banks are closing at an incredible rate. What does it mean for the average citizen... nothing.

As long as you bank at an institution that is FDIC insured and don't have obscene amounts of money in a savings account - you will be fine. For the majority of these banks, they are being bought by other institutions.

And I know Barry is anti FED but they returned 45 billion - yes billion - dollars to the U.S. Treasury last year.
Old    Barry Waste (barry)      Join Date: Apr 2002       01-17-2010, 3:54 PM Reply   


is the FDIC running out of money?
If you’ve been following the financial news over the past day or so, you’re likely aware that the FDIC insurance fund is running low. In fact, the FDIC has seized 94 failing banks during 2009, driving the insurance fund to its lowest level since the peak of the Savings & Loan scandal in 1992.

Here’s the scary thing… The FDIC currently insures roughly $4.8 trillion in deposits, but they only have about $10 billion on hand (down from roughly $30 billion at the beginning of the year). In other words, the fund could easily be wiped out by the failure of just one major bank.

Covering the shortfall
The FDIC is funded by premiums from member banks, but these premiums haven’t been able to keep up with the FDIC’s recent “burn rate.” The FDIC is thus considering at least four different options for shoring up the insurance fund.

Borrowing from healthy banks.
Levying a special fee on banks.
Borrowing from the Treasury.
Collecting regular premiums early.
Unfortunately, none of these options are particularly attractive.

Borrowing from healthy banks reduces the amount of money available in the private sector to fund the recovery, whereas borrowing from the Treasury is politically objectionable. At the same time, levying additional fees could be push weak banks toward the edge of failure.

According to an article in the Wall Street Journal, the FDIC is currently leaning toward the final option. Unfortunately, that is a temporary solution, as they’re essentially cannibalizing future premiums.

I'm not Anti-FED... I'm just very Pro-Barry and tend to distrust those who tell me not to worry because they have my best interest in mind.

(Message edited by barry on January 17, 2010)

(Message edited by barry on January 17, 2010)
Old    Jonny (wakeboardlasvegas)      Join Date: Mar 2007       01-17-2010, 7:24 PM Reply   
B+!
Old    Sean M (magic)      Join Date: Mar 2002       01-17-2010, 8:16 PM Reply   
Banks suck, go to a local/regional credit union. So much better.
Old    C.I.E..... Evan (guido)      Join Date: Jul 2002       01-18-2010, 12:34 PM Reply   
Lucky for me.... I have no money in the bank, so if mine fails I'll have nothing to lose.

LOL!!
Old    Nacho (denverd1)      Join Date: May 2004       01-18-2010, 12:48 PM Reply   
They were going to collect in advance the next 3 years premiums. SUre its another expense, but they can also be listed under Assets on the bank balance sheet. Sounds like the best option to me.

Did you know that the increased amounts ($100,000 -> $250,000) expire in 2013?
Old    Paul (psudy)      Join Date: Dec 2003       01-19-2010, 7:29 AM Reply   
Yes you have to pay 3 years in advance now. We went from 16K a year to 189K a year for FDIC insurance. It put a large burden on small banks, that are having difficult times. Yes, you expense it out of earnings, but you don't carry it as an asset.

B+
Old    Jeff Baker (innov8)      Join Date: May 2005       01-19-2010, 8:24 AM Reply   
A- for my bank
Old    Paul (psudy)      Join Date: Dec 2003       01-19-2010, 8:40 AM Reply   
"Banks suck, go to a local/regional credit union. So much better"

If you could find ratings on CUs, you might not say that. They are not backed by the FDIC either. NCUA.
Old    Wes (pesos)      Join Date: Oct 2001       01-19-2010, 9:24 AM Reply   
I am not impressed with my local credit union - I do still have an account there. But I moved everything to Wells from Skank of America a couple years ago and I have been very happy with them.

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