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Poll: So, whose bank has failed?
SilverEagles92
Posts: 6,787 ✭
Several of my family members' banks have failed. I bank at a Credit Union, so I don't really worry about failure too much. Has your bank failed?
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SilverEagles92
Posts: 6,787 ✭
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Authorized dealer for PCGS, PCGS Currency, NGC, NCS, PMG, CAC. Member of the PNG, ANA. Member dealer of CoinPlex and CCE/FACTS as "CH5"
<< <i>My mom and I have accounts at Wachovia. While Wachovia did not fail, I'm still a bit worried... >>
I included Wachovia in the poll since they seem to be right on the verge.
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You mean to tell me banks are failing, not mines. Just last month I invested in a note paying 8%. I think itza 2 year note.
I am one of the original stockholders, wish I had some real money when they were first looking for investor. To date the stock is up 84%
TowneBank check it out.
LeeG we need you to come on over and bank with us, if you're not there already.
Herb
<< <i>I bank with TD Banknorth. And they haven't had any problems as of yet >>
ditto. i also bank with BOA.
<< <i>My mom and I have accounts at Wachovia. While Wachovia did not fail, I'm still a bit worried... >>
Wachovia was 12 hours from the Fed taking them over and Citigroup got one heck of a Fed brokered deal. Stock holders got $1 per share in the buyout. Anyway you look at it someone suffered, in this case the stock holders paid instead of the the FDIC or depositors. Hmmm, at least they didn't "officially" go under..................
By the way, I don't think I would be worried at this point anyway unless your deposits at a single bank are over the insured limits.
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Wachovia bought A G Edwards which has my IRA account. Now, I see my money market account within that IRA is now deposited with a Wachovia bank. Well I guess they needed the money. It seems sort of self serving to me. They are paying .88% interest at the moment. They reserve the right to charge up to 6% per year for handling that bank account plus 1.2 % for research. At least it is FDIC insured.
<< <i>They reserve the right to charge up to 6% per year for handling that bank account plus 1.2 % for research. >>
Are you serious that they charge 7.2% fees per year?
Who cares about insurance?!?
You are on a schedule to go broke with these sorts of fees.
There is essentially no way to grow your account in this situation.
I once had a 'full service' account. It was dropped after a short expensive education in how simple money management actually is when I do it myself.
This is not a very competitive policy for a bank that wants your deposits. I'd go shopping in a second to avoid that 7.2% hit. Expect a very stiff "outbound-transfer" fee when you close your account. Be thankful it will be the last needless fee you pay.
No problems with any of them.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
I work at what is left of Wachovia on the securities side. Anyone hiring?
They say they will charge up to that point which does seems quite excessive to me even as an upper limit.
My last statement showed net interest of .88% to me. I don't kmnow how that compares to other funds. Evidentlt they are not charging anything like 7.2 % or I would be losing money.
Bankrate's web site
I think they are keeping the lions share for themselves. And have a policy to assure that they get the lions share even in good times.
I would recommend transferring that retirement account into a discount brokerage and then investing in very low fee funds.
Right now, it sounds like you are not asking much of your bank...and they are taking a great deal of fees for the non-effort.
I know it's off topic, but the money you save in one year could buy you many many ounces of gold. Think on that!
<< <i>Wachovia didnt fail, and wont since they are now being bought Citi, it likely would have had a money run leading to failure.
I work at what is left of Wachovia on the securities side. Anyone hiring? >>
I'm, sorry to hear that and I hope everything works out well. Unfortunately if I had to guess, the fed only wanted the depositors to prevail in this situation and are willing to let the rest suffer. Not sure of the situation, but citi has a monster securities business and wonder why they chose not to take that as well? Could the fed be letting parts fail that will not effect the economy as much as $600 billion in depositors could?
<<Conflicts of Interest
Edwards and its affiliates receive fees and benefits for services provided in connection with the Program. Edwards makes a profit on deposits at the Program Banks determined by negotiated fees between the Program Banks and Edwards, currently up to 0.5% per month on deposits in the Program. Edwards may prioritize the Program Banks that pay higher fees over other Program Banks, thus increasing the amount that Edwards receives, but not increasing the amount earned by you.
Edwards financial consultants receive compensation from Edwards on your deposits in the Program, currently up to 0.10% per month on deposits in the Program, which is significantly higher than the compensation received on money market mutual funds, thus providing an incentive to recommend deposits in the Program.>>
<< <i>If this is a "money market" account, then 0.88% is rather low, a fraction of what you should be getting.
Bankrate's web site
I think they are keeping the lions share for themselves. And have a policy to assure that they get the lions share even in good times.
I would recommend transferring that retirement account into a discount brokerage and then investing in very low fee funds.
Right now, it sounds like you are not asking much of your bank...and they are taking a great deal of fees for the non-effort.
I know it's off topic, but the money you save in one year could buy you many many ounces of gold. Think on that! >>
I believe the .88% is the savings option, not a money market.
Imagine after a good week, the business owner and his wife are at a nice restarant having a meal, winding down from a big week and on monday morning finds out that on Friday night, while having that meal, the bank was taken over by the federal government?
Seriously, that's that, yes?
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Tom Pilitowski
US Rare Coin Investments
800-624-1870
A small business protects itself by having funds in an account with additional private insurance. Some banks purchase additional deposit insurance over the standard FDIC 100k.
Or a small business protects itself by placing no more than $100,000 in any particular bank.
Or a small business invests in a discount brokerage with SIPC protection up to $500,000.
I've never been there. I have no direct experience.
I suspect, though, that if you stand to lose a great fraction of your company through a bank failure...that is an unacceptable and unnecessary risk for the small business which can be mitigated.
<< <i>Hasn't failed but it's a concern. There's no warning out there and the announcements of these failures have all happened on a friday night. How does a small business protect itself if it has at times considerable funds in the company checking account? I'm told that the FDIC insures 100K TOTAL and that is it. What is the business has many times that amount?
Imagine after a good week, the business owner and his wife are at a nice restarant having a meal, winding down from a big week and on monday morning finds out that on Friday night, while having that meal, the bank was taken over by the federal government?
Seriously, that's that, yes? >>
This is my exact fear. As a small business owner, even though I live paycheck to paycheck, I have a payroll almost triple the insured amount bi-weekly. You may say to yourself poor you, you have $300k in the bank every other week. BUt if you saw my margins you would stick to what your doing. If the bank went under and I got hit for half a payroll, I would fail and 160 employees out of work, no questions about that.
<< <i>
<< <i>Hasn't failed but it's a concern. There's no warning out there and the announcements of these failures have all happened on a friday night. How does a small business protect itself if it has at times considerable funds in the company checking account? I'm told that the FDIC insures 100K TOTAL and that is it. What is the business has many times that amount?
Imagine after a good week, the business owner and his wife are at a nice restarant having a meal, winding down from a big week and on monday morning finds out that on Friday night, while having that meal, the bank was taken over by the federal government?
Seriously, that's that, yes? >>
This is my exact fear. As a small business owner, even though I live paycheck to paycheck, I have a payroll almost triple the insured amount bi-weekly. You may say to yourself poor you, you have $300k in the bank every other week. BUt if you saw my margins you would stick to what your doing. If the bank went under and I got hit for half a payroll, I would fail and 160 employees out of work, no questions about that. >>
Mine too. Our banks website was down for most of the day today. I called the VP on her cell phone tonight and she seemed a little annoyed. ( there's no problem, call me tomorrow)
Tomorrow her branch will lose significant deposits to competing banks. I'll give them something to be annoyed about now.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
I think you are correct. But my money market account became a Wachovia Mortgage FSB bank account with no effort nor input from me.
I see they list a money fund as one of their options on the website. I can now understand why they had no incentive to steer me back into that direction. My old advisor recently jumped ship. I think I will follow her.
Anybody else have an AG Edwards money market account in the old days? And what happened to yours?
Come to think of it, they made it through the depression pretty well too.
Come to think of it, they made it through the depression pretty well too.>>
Nevertheless, they were absorbed by (or at least merged with) another bank a few years ago which assumed the BOA name, but the headquarters are now in Charlotte, NC.
<< <i>Wachovia only didn't fail in name only. Considering how I saw them managing their tellers during the two years my wife worked there, and considering how they take every opportunity to screw customers out of money, I'm not that surprised. They used to force the tellers to push bad banking options (like credit cards) on the young and otherwise financially uneducated. If the tellers balked because they thought the customer wouldn't benefit from it, the tellers got called out on it during their weekly conference calls. Ugh...I'm glad my wife's finally out of there for good. >>
I was only pointing out they didnt fail, they would have within a week. I had an article I was reading a couple weeks back on why Wachovia was the worst run bank in the country. I wonder who it is now?
<< <i>Wachovia only didn't fail in name only. >>
I just wanted to modify that statement for clarity, since I wrote it at nearly 3:00 am.
"Wachovia's non-failure was a non-failure in name only (i.e., they basically failed, despite what's being said)." Is that a little better. I think everyone got what I was saying, but I wanted to clarify just for myself.
Anyone know about emigrant direct?
If you want a barometer of how your bank is performing, look at their stock ticker. Credit Unions are generally safe right now, unless something untoward happens like a general run on all financial institutions.
(Note: Credit Unions are not commercial banks and do not have FDIC insurance. Any of you who dealt with the Savings & Loan mess - lots of self service and insufficient oversight resulting in greed - will understand why that is important.)
"Being bought = failed bank"...........just because some lipstick was put on the problem didn't solve it.
BoA is also in the targets to go down something during this crisis. They are big, but not too big to fail.
roadrunner
Their troubles are not surprising. I have mortgages on four or five properties with them that I got within the past four years. These were the easiest loans I ever got on property. In each case, it seemed like the only real checking they did was to make sure that I was above room temperature.
Oh, mine are all current. But I can see where they probably had oodles that weren't performing.
<< <i>The FDIC insurance money comes from us >>
I don't believe so. The Insurance fund is funded by the banks. If the fund drops below a threshhold, then the premiums to the banks are increased. Indirectly, each depositor pays for the premiums with lower savings rates & higher fees. Credit Unions are insured by NCUA & they use a similar formula that FDIC uses.
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The rules governing the FDIC currently call for a deposit ratio of somewhere around 1.25%. (probably lower today due to expenditures) That means that the FDIC has enough funds to cover 1.25% of all of the deposits. If the banks were to fail en masse, then the FDIC fund would cover what it could.
The rest is guaranteed by the full faith of the US Treasury. So, yes, the public is on the hook if the FDIC runs through their funds. Last I heard, they had gone through much of their funds and were taking steps to attempt not to go broke. This was the public statement anyway.
Killinger got what he had coming. He is a greedy, unethical SOB.
So, as one of the "many experts" let me give you all a little information that may stop some of the "crazy talk".
The current problem started many years ago with the passage by Congress of "CRA" the Community Reinvestment Act.
Its was intended to give access to credit for these that would normally NOT qualify by having Banks reach a little to grant credit.
CRA was modified in the 90's and became a "stick" the Regulators used to control Banks if they did not make loans to "under served"
groups. Congress also let the two GSE's, Fannie Mae and Freddy Mac, apply government guarantees to mortgage loans that were to these "under served" groups, and many very risky mortgage loans like no down payment loans, stated income loans, adjustable rate loans and all the other trash that any broker would bring to them.
This lead to more buyers than homes for sale, which drove up the price of real estate all over the world. Add greed from buyers, sellers, real estate agents, bankers, appraisers, Washington and you and me (yes, everyone) and here we are.
Wall Street purchased much of the mortgage paper that was "guaranteed" by the GSE's (which have both been taken over by the Fed),
real estate values began to fall, people quit paying the mortgage payments for many reasons, but many just because they owed more than the property was worth and on and on. You get the picture.
"Banks" are not failing. Wall Street Investment Banks have failing, Savings and Loans like Indy Mac, Wamu and Wachovia (because of the World Savings acquisition) have failed and that is due to the fact that most of the loans are mortgage related. B of A will not fail and most Commercial Banks will not fail, and even your Credit Unions, which makes Second mortgages and car loans probable will not fail. Even if your "bank" does fails, not to worry as NO ONE has ever lost their deposits in a FDIC insured Bank. By the way, Banks pay an FDIC insurance premium to provide the insurance, not the taxpayer. There is so much more detail but I would be typing for weeks . . .
I hope Congress can set aside petty politics for once and do what is right for the country.
The credit system is a mess and since the Government got us here, lets hope they can help fix it without a mortgage on our future.
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<< <i>
(Note: Credit Unions are not commercial banks and do not have FDIC insurance. Any of you who dealt with the Savings & Loan mess - lots of self service and insufficient oversight resulting in greed - will understand why that is important.) >>
They are covered under the NCUA, which just like the FDIC, only covers accounts to $100K.
Times like these are a nice time to have a lot of cash, unfortunately the banks are not very safe places to have it. I say that because cash is going to be king when all this settles and credit is already drying up.