Common Questions By Failed Bank Customers The closing of a failed bank is usually a routine event but most people will have questions about how the closing of their bank will affect them. Many people, for example, may be surprised when they find out how the interest rate on their savings can change when a […]
Answers To Common Questions By Depositors When A Bank Fails: One Answer That May Surprise You
June 4, 2009 By 4 Comments
What Should I Do When My Bank Fails?
June 4, 2009 By 3 Comments
Facts For Depositors When A Bank Fails The former head of the FDIC has predicted that up to 500 banks will fail this year and the FDIC has 305 banks on it Problem Bank List. The average depositor usually has no way to determine if his bank will fail. Given these circumstances, it is important […]
Should I Buy A CD From A Problem Bank?
May 27, 2009 By Leave a Comment
Safety First For Savings The highest rate certificates of deposit (CD) are usually offered by banks that may be on the FDIC Problem Bank List. A troubled bank usually has difficulty attracting deposits due to the risk of a banking failure and is therefore forced to offer a higher CD rate to attract funds – […]
Problem Bank List Grows, Deposit Insurance Fund (DIF) Running On Empty
May 27, 2009 By 2 Comments
FDIC Quarterly Banking Profile 3/31/2009 The FDIC latest Quarterly Banking Profile, released today for the quarter ending March 31, 2009, showed another increase in the number of problem banks and a further large decrease in the FDIC Deposit Insurance Fund (DIF). As of the latest quarter, the number of problem banks increased to 305 with […]
FDIC And Congress Take Action To Bolster FDIC Deposit Insurance Fund (DIF)
May 25, 2009 By 1 Comment
FDIC Imposes Special Assessment To Increase DIF The FDIC had previously publicly acknowledged that the FDIC Deposit Insurance Fund (DIF) which protects depositors at failed banks had fallen to a dangerouly low level. The FDIC believes that it is important that the fund not decline to a level that could undermine public confidence in federal […]
FDIC Temporary Increase In Deposit Insurance Extended
May 25, 2009 By Leave a Comment
FDIC Deposit Insurance Increase Extended The FDIC announced on May 21, 2009 that the temporary increase in deposit insurance has been extended. On May 20, 2009, President Barack Obama signed the Helping Families Save Their Homes Act, which extends the temporary increase in the standard maximum deposit insurance amount (SMDIA) to $250,000 per depositor through […]
Sign Of A Problem Bank – High CD Rates
May 25, 2009 By 2 Comments
Brokered Deposits Keep Problem Banks Alive Citizens National Bank, Macomb, Illinois, was the latest failed bank on May 22, 2009. One eye-catching statistic on this bank failure was the stunning percentage of Citizens assets represented by brokered deposits. Of total deposits of $400 million, a whopping 50% ($200 million) represented brokered deposits. Many […]
FDIC Reveals List of Opt-Out Banks For TLGP
May 21, 2009 By Leave a Comment
Banks And Financial Firms Say No To FDIC Temporary Loan Guarantee Program (TLGP) Since March, many banks and financial firms have seen the value of their stocks soar as investors’ perception of the overall health of the banking industry improved. Based on the better equity market environment, many banks were able to raise private capital […]
BankUnited Biggest Failed Bank Of 2009 With Massive Asset Losses
May 21, 2009 By Leave a Comment
Largest Banking Failure of 2009 The failure of BankUnited, FSB is the largest banking collapse of 2009 and marks the 34th FDIC insured bank to be added to the Failed Bank List. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.9 billion, leaving the DIF with a balance of […]