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IndyMac Bank fails, what about FDIC insurance

With banking regulators taking over IndyMac Bank, you may be wondering how safe your money is. The WSJ had an an interesting article about how much money is on deposit at banks in excess of the FDIC insurance of $100,000 per depositor per bank.

Click here to read "Bank fears spread after seizure of IndyMac". 

My best advice, stay under the FDIC insured limit by keeping your money in several banks. You'll sleep soundly at night no matter what happens.

And it will be a lot more comfortable than stuffing cash into your mattress. Wink

Published Monday, July 14, 2008 6:07 AM by Howard Arnoff
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Comments

# re: IndyMac Bank fails, what about FDIC insurance

Now that IndyMac is the first of many banks to fail, I think we're going to see a lot more banks, not only close for the weekend, but close for good and go bankrupt. Rumors talk about 90+ banks, I think that's a little exaggerated, but very well possible. I would guesstimate around 30+ banks will close shop.

I'm an investor in the stock market and have started to build a position in Bank of America. One of the few 500 lb. gorillas left in the room. Every dip, I pick up more shares. I don't think there going anywhere, but you never know. Investments are all risky.

I never thought I would see this happen here in the USA, but here we are....let's all cross our fingers.

petes2cents.com

Monday, July 14, 2008 2:18 PM by petes2cents

# re: IndyMac Bank fails, what about FDIC insurance

Pete, thanks for stopping by and while I think we'll see more failures, this pales in comparison to the s and l crisis with hundreds of banks closing.

The most important thing, whether you have your money in a Citigroup, JP Morgan, Bank of America, Wachovia and others is to keep under the insured FDIC limit.

The market and the public are very susceptible to rumor right now and a bank failure and takeover is the consequence.

On the other hand, I wouldn't suggest investing your money in beaten down stock prices of financials at this point, there certainly are a few banks that will go to zero but your savings should be safe. I'm not suggesting B of A will fail but one or two big ones will surprise everyone.

Monday, July 14, 2008 6:32 PM by Howard Arnoff

# re: IndyMac Bank fails, what about FDIC insurance

WAMU is next it seems....

Tuesday, July 15, 2008 6:25 PM by Mike G

# re: IndyMac Bank fails, what about FDIC insurance

Mike, you're just as bad as the hedge funds spreading rumors to drive down the price ;)

Having said that, it wouldn't surprise me in the least to see Wamu and another big W bank not necessarily fail but be sold to someone.

Wednesday, July 16, 2008 4:25 AM by Howard Arnoff
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