Maryland state regulators closed the Bank of the Eastern Shore, Cambridge, MD and the FDIC was appointed as receiver.  As has happened on previous occasions, the FDIC was unable to find a buyer for the failed bank, leaving uninsured depositors at risk of loss on their savings. To protect insured depositors and wind down the operations of failed Bank of the Eastern Shore, the FDIC [...]

The ultimate nightmare for a bank customer is to have uninsured funds in a failed bank.  Depositor losses at FDIC insured institutions occur more frequently than most people realize. Twice already in 2011, depositors at two failed banks have lost money on uninsured deposits.  When a bank fails, the FDIC as receiver, will typically find a buyer for the failed bank and all deposits [...]

The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama on July 21, 2010, permanently increases the deposit insurance limit to a maximum of $250,000. Deposit insurance limits had previously been temporarily increased from $100,000 to $250,000 effective from October 3, 2008, through December 31, 2010.  The higher insurance coverage applies [...]

June 17, 2010 – Lawmakers have agreed to make permanent the temporary increase on depositor insurance by the FDIC.   To avoid depositor panic during the height of the financial crisis in the fall of 2008, the government temporarily increased deposit insurance limit from $100,000 to $250,000.   The increased deposit insurance was due to expire on December 31, 2013 The US [...]