in the event of a bank closure

http://onlinejournal.com/artman/publish/article_2936.shtml

The Bush bust of '08: It's all downhill from here, folks



On January 14, the FDIC web site began posting the rules for reimbursing depositors in the event of a bank failure.

-snip-

The implication is clear, the FDIC has begun a “death vigil" for the many banks which are currently drowning in their own red ink. The problem for the FDIC is that it has never supervised a bank failure which exceeded 175,000 accounts. So the impending financial tsunami is likely to be a crash-course in crisis management. Today some of the larger banks have more than 50 million depositors, which will make the FDIC's job nearly impossible.

-snip-

It means there's going to be an unprecedented wave of bank closures in the US and that people who want to hold on to their life savings are going have to be extra vigilant as the situation continues to deteriorate. And it is deteriorating very quickly.
-snip-
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take care

The difference being that this time around, The Corporations who have brought this upon us control the media - so it will be 1933 before the word "Depression" is used.

I have worked for some of these people- their money is in oil stocks - and hey the economy has never been groovier!

into one three story building in the Caymans, isn't it?

Of course, that is almost all in Treasury securities, notes, and bonds.

be worth?

I'm VERY pessimistic about our financial future (gee, could you tell?). :hi:

the dollar is tanking and if the banks fail, it's value will plummet.

I think you are guaranteed up to 200k but if you need a wheelbarrow as a wallet, I don't think 200k will be worth more than a cheap loaf of bread.

Plus, now that the various other oil rich nations are moving to the euro, the dollar will be worth, in a phrase, diddily squat, very soon.

feel better now?

I'll let you in on the ground floor of a new field of investment that's guaranteed returns: the blackmarket.

Do I pull my money out of my bank if it starts to look too bad? How do I know if my bank is having severe problems? Are they required to notify me? What are the signs?

I keep reading the doom and gloom articles without learning what to do or when. Drives me nuts.

Yes, some things are worth watching for and being afraid of, but it drives me nuts too so kicking for someone who might have answers to:
What do I watch for?
What do I do?

Don't keep more than $100,000 in any one bank.

Of course, if you've got $90,000 in one bank, and it fails, then you could be without your money for awhile, so you might consider splitting it up in two banks and hoping they both don't fail. That way you'd still have access to cash until the FDIC came through.

When we still had Savings and Loans, one sign that they had problems was they paid abnormally high interest rates because they needed depositors. Frankly, I don't know what the rules are on interest rates for banks, but I thought I'd thrown that in anyway.

at least that's the longest i was without access to my money during a bank failure and there were a LOT of them in the s&l crisis collapse days

Wherein DU'ers discussed taking their money out of Citibank banks and then a month later, the new bank would be acquired. By Citibank.

And Citibank own many banks with other logos - you might just not know the bank you are involved with is now Citibank.

And Citibank is NOT in good shape.

Of course this is purely academic. I don't think there are very many of us who have $100,000.

Generally, you're insured up to $100,000 in any one bank. But there are exceptions. More here:

http://www.fdic.gov/deposit/deposits/insuringdeposits/

As for "how soon" you can get your money after a failure, I think it's real fast currently. I just don't know how much that might change if there are a cascade of failures. Hopefully we'll never have to find out.

I have been under the impression that it covered each account.

Ages ago--probably in the late 80s or early 90s--Time magazine published a piece by a woman who'd been hurt when one of those S&Ls closed down. She'd had all her savings and a couple of loans in that bank. If I remember correctly, when the FDIC took over, they wanted full payment on the loans IMMEDIATELY but it took forever to get her savings back. She wound up living in a car.

Maybe three or four hundred in checking.:nopity:

and investing in a 12pack of white tube socks.
I'm going to find a good hiding place & maybe put a couple of twentys or tens in each sock. Don't hide them all in the same place just in case someone finds one. At least you'll have a stash somewhere else.
With this method of savings, I figure when the banks slam their doors shut to patrons, I may end up being the wealthiest one on the block afterall.
Cash on hand is tangible.

ask your mom how much money they lost in 1992 when the banks and savings and loans failed

the person who uses stories like this as an excuse not to save money is the real loser

nt

we're all in deep shit. I swear, the news gets worse every day . . . .

i have to hand it to the fdic, they know their stuff and they make it a smooth process, to guarantee that the depositor doesn't lose out

not sure what you mean by "unprecedented," i'm thinking that word doesn't mean what you think it means, bank panics and bank closures are a regular occurrence in america in my lifetime, esp. in the early 90s (poppy bush and friends) but i've also been thru a few internet bank failures

this is something in our country that actually works right

panic, panic, fear fear, terra terra might be better left to other targets

Because no one is gonna be able to get their money out of their own bank!