Warn a brother! FDIC may not help!

[Josh_LA]

Bair Says Insurance Fund Could Be Insolvent This Year
http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=alsJZqIFuN3k

Cash out while you can, don't be the last to sit in a musical chair

[TonySutton]

I keep enough money in the bank to cover the checks, everything else is paying down debt and building up supplies.

[brandon]

they already are insolvent

[hugolp]

I keep enough money in the bank to cover the checks, everything else is paying down debt and building up supplies.

Same here.

[Agent CSL]

Time to make a bank run. :o

Question. If my small loan is at the same bank that holds my checking account, and then the bank goes under, would I lose my money and STILL have my loan, or would there be some financial kung-fu where I could write off part of the loan with whatever money I had in my checking account amounted to when the bank was taken over?

[axiomata]

Someone I know who manages a small community bank without exposure to bad assets on their balance sheet said that the FDIC has increased its premiums by over 2000% for 2009.

[ghengis86]

Someone I know who manages a small community bank without exposure to bad assets on their balance sheet said that the FDIC has increased its premiums by over 2000% for 2009.

i believe it. did you read the OP's artilce from bloomberg? the increase in fees will wipe out 50-100% profit at some small community banks.

[axiomata]

i believe it. did you read the OP's artilce from bloomberg? the increase in fees will wipe out 50-100% profit at some small community banks.
No, I will take a look at it now.

And the exact premium increase he had mentioned was a lot more than 2000% percent. 2850% I now recall.

I think it is important to support your well run community banks and credit unions. Even some large national banks such as US Bank and Northern Trust have returned their TARP funds which is laudable. I just wish consumer sentiment played a larger role in deciding which banks fail and which succeed.

[akihabro]

I guess insuring deposits up to 250,000 wasn't such a good idea.
"Bair rejected arguments that the agency should use government aid to rebuild the fund. The FDIC has authority to tap a $30 billion line of credit at the Treasury Department and legislation pending in Congress would boost the amount to $100 billion."
That's right borrow more Chinese dollars and prop up a failing system. Works great! You know most people follow fiscal conservatism, why would running a government be any different?

[idiom]

They just approved a $500 Billion loan to the FDIC. It looks they are getting ready to pull apart something big.

[FrankRep]

Bair Says Insurance Fund Could Be Insolvent This Year
http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=alsJZqIFuN3k

Cash out while you can, don't be the last to sit in a musical chair

The FDIC just got bailed out. $500 Billion

http://www.businessinsider.com/now-the-fdic-is-getting-bailed-out-too-2009-3

[Gary07]

Another bank failed last night. See link:

http://www.foxbusiness.com/story/markets/industries/finance/freedom-bank-georgia-fails-th-failure-year/

[KenInMontiMN]

How are some of the local banks recouping those higher premiums?

I deposited a portion of my paycheck to cover the bills I was mailing a few wednesdays ago, mailing off the tuesday afternoon before.

The deposit was made before 3 pm deadline Wed.; the bills hit the bank in thursday's business. I received the standard overdraft notice in the mail charging me 33 dollars for each of the two items- that same overdraft notice noted that I had a beginning balance that day of over 1000 dollars as well as an ending balance after the two items and overdraft fees were subtracted, still over 1000 dollars.

Me: Why are you charging me overdraft fees when I'm not overdrawn?

Local bank: this isn't a new policy, we have a longstanding policy of placing a 48 hour hold on payroll check deposits (5 days on other check deposits). Therefore you are overdrawn despite the funds being in place the day before- they are still in the holding period.

Me: But that was only applied to receiving cash back against that deposit, you've never treated checks arriving as overdrafts in the past if the deposit was in place prior.

Local bank: The 48 hour hold is our policy and has been for a long time (mgr refuses to directly address this change and call it such). I will refund those charges this one time only, but in the future if you make a deposit on Wed's business, know that those funds must not be impacted with any type of draft until friday's business; future charges if that happens will not be forgiven.

Me: But you've always allowed up to 1000 dollars cashback on my payroll deposit immediately, as a specific arrangement between my employer and your firm, since my employer employs thousands and you wish to be the bank of choice for our people. Is that still your policy?

Local bank: Yes, that policy is still in place.

Me: Don't you see some obvious contradictions in your policies? The message seems to be: don't deposit any more than you must, maximize your cashback and pay your bills through other methods using that cash. You're also telling us that if we deposit with you, payday is no longer wednesday but rather friday.

Local bank: you are aware of our policies now.

Absurd. Needless to say I'm a customer of another bank now, the bank the my employers checks are written from, as a matter of fact. I also sent off letters to my state reps highlighting the situation, requesting that regulations be put in place requiring any bank operating in the state to refrain from charging fees for non-existent overdrafts created by hold policies. A couple of weeks later the bank that did this announced they were moving their HQ to SF, South Dakota- land of the unregulated. Good riddance, says I. Take your branch offices over there as well. They ponied up a large sum for naming rights for the college football stadium about to open that my employer built, but are no longer a local company. I think my employer should kiss that contract goodbye and shop it out anew to actual locals.

[Josh_LA]

I guess insuring deposits up to 250,000 wasn't such a good idea.
"Bair rejected arguments that the agency should use government aid to rebuild the fund. The FDIC has authority to tap a $30 billion line of credit at the Treasury Department and legislation pending in Congress would boost the amount to $100 billion."
That's right borrow more Chinese dollars and prop up a failing system. Works great! You know most people follow fiscal conservatism, why would running a government be any different?

I highly doubt that boost to $250K mattered, anybody who's seen the first few banks fail and still kept over $100K in the bank deserves to be screwed.