http://www.msnbc.msn.com/id/25690666/
I guess I’d be pissed too. Wonder if those that have more than the insured amount in deposits will be getting all their money back?
Wait until they start trying to buy gold at the coin shops.:rolleyes:
Blame Sen. Schumer, sure the bank had issues with outstanding bad debt but it had enough reserves to stay afloat unless there was a huge panic run of withdrawals, which coincidentally enough happened right after Schumer sent his letter out.
Also very few of the customers of that bank will actually lose anything as FDIC insures 100% of assests up to $100,000 and $250,000 for some types of retirement accounts and I believe they have already stated that any assests outstanding above that amount (which accounts for a very small number of actual customers) will be reimbursed at 50¢ on the dollar.
And when the FDIC runs out of money, then what happens? Folks were lining up at WaMu this moring to get their money.
It’s called “fractional reserve banking” for a reason. The banks only have a fraction of the depositor’s money avilailable to cover withdrawals.
58 billion to go before FDIC runs out of money. It’s 200,000 for joint acounts.
Amazing… the rich always get bailed out - and the people always foot the bill.
Kinda makes you wonder just how stupid the general public really is, and has been.
The FDIC insurance fund is funded with assessments to the banks that offer insured deposits. The “people” aren’t footing the bill, the shareholders of the member banks are.
Our currency is a fiat, they can always print as much as you want.
They can’t print money as much as they want. The cost of government loans would sky rocket, you’ll have very high rate of TNX and IRX, and plunging TLT. US government would be screwing itself if they just print money. Can you say Zimbabwe? It’s physically impossible.
Anyway, if you are under $100k per account per bank, you’ll be fine, just have to wait a bit for your money, for the first few banks anyway. Regardless of what bank you are with, it’s time to get some cash out and deposit at the bank of seely, secured with lead and brass. Remember the FED just spent gazillion bailing out investment bank (BSC), why I don’t know. Soon they will fund our mortgage, so government owned corporations, can you say socialist? The bankers and wall street scum needs to come clean, banks that are insolvent need to be closed and consolidate. A few people need to be thrown in jail, especialyl all the CEO who get on national tv telling poeple they are well capitalized, only to go bk the next day and bailout by taxpayers. We didn’t get the million dollars bonus they gave themselves did we? Privatize profit and socialize loses.
One of my favorite blog, read and draw your own conclusion.
http://market-ticker.denninger.net/archives/516-The-Idiot-Parade-Preview.html
Go ahead and see where campaign contribution and money coming from for Senator Chris Dodd, Barney Frank, Obama, Hillary, etc.
Are you smoking crack? You can tell that one to your mommy.
The “People” ALWAYS foot the bill – just where do you think they GET the money they keep bailing all of these blantant scams out with - thin air?
Publically held companies are nothing more than really large 3-card monte games – the consumer, i.e. “The People”, always pay.
Would the .gov print the money? Who knows. Could they? Absolutely.
I agree there’s a lot of problems that go back to education and an unwillingness to prosecute real crooks. We’re sewing a pretty bad seed right now and it seems like every crisis we fuddle through doesn’t teach us any valuable lessons, it just makes us feel 10ft tall and bulletproof. A lot more is insolvent in the USA than just banks.
Usury needs to be regulated a bit more. Most people couldn’t handle it for a variety of reasons and we’re all worse off.
Ah, an intelligent post!
i was about to say that, one spouse withdraws $100,000 and the other spouse withdraws the remainder…, BUT ! any one with that kind of cash and does not have it invested in solid securities is just plain asking for trouble.
And yet more frustration:
and watch for the second shoe to drop…
most banks issue loans with the clause that allows them to collect the remaining amount on the loan, in lump sum. before a bank completely folds, they go after any loans that are out there. so you might not only loose your savings, but might also be pressured to pay off existing loans you might have through that bank.
Are you sure about that? The due in full clause in every loan document I have seen relates to the default of the borrower.
Yeah uh that’s not exactly how loans are written. Any outstanding loans are part of the bank’s assests that are either assumed by the institution that takes over management of the bank or sold off to other institutions.
we were discussing this issue at office and coworker said it happened to her. her’s was a credit union that had to shut, and her loan was called due. might be different for banks. and from what she said, it wasn’t that long ago. possible she was exaggerating, but that is unusual for this person so…
HELOC can be recalled at anytime.
Or, maybe she was delinquent. People tend to leave that part out when they blame the other party.
It isn’t a regulatory issue (credit unions vs banks), it is a contract issue. Contracts are contracts.
They can’t unless it is in the contract. Events of default should be clearly spelled out in the contract (loan documents). And shame on you if you signed a contract that said the loan could be called at any time for any reason, even without default on the part of the borrower.