Why Savers Love Problem Banks

FDIC Issues Rules For Less Than Well Capitalized Banks The FDIC has an internal list of 305 Problem Banks which they do not make public.  In general, banks included on the list have series deficiencies with their finances, operations, or management that threaten their continued solvency. Once a bank is included on the list, they […]

Should I Buy A CD From A Problem Bank?

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 – […]

Sign Of A Problem Bank – High CD Rates

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 […]