FDIC preparing for bank failures

[SleepWalkerX]

http://online.wsj.com/article/...?mod=hps_us_whats_news

Keep an eye on your bank account guys.

 

[LegendKiller]

Meh, nothing new. Banks go under in cycles depending on how well they managed themselves and their ability to gain support through equity or debt markets.

Survival of the fittest, provided they don't present such an extreme case that their fall would result in market paralysis. It'll be interesting to see how the industry responds to this.

 

[lupi]

I heard a story that the FDIC was hiring some of its retired peeps with S&L experience to help prepare for a wave a collapses it sees coming.

 

[piasabird]

Raising the interest rate will not affect old debt on fixed rate loans. Part of the problem is often the prime lending rate was so low that you could not make much money off of the interest. Maybe I would try to scoop up a foreclosed property if my credit was not in the toilet already.

They cant lower the interest rate below zero.

 

[Fern]

Originally posted by: SleepWalkerX
http://online.wsj.com/article/...?mod=hps_us_whats_news

Keep an eye on your bank account guys.

The accounts are insured. Unless your balance exceeds the maximum FDIC coverage (still $100K IIRC), no need to worry.

Fern

 

[WhipperSnapper]

Ummm...how do you go about collecting that insurance? How long will it take? What if you need your money right away?

 

[NoStateofMind]

INSERT MY MOST RECENT COMMENT HERE

Just so people don't get their panties twisted.

 

[StageLeft]

I heard on glenn beck (do not ask, I don't watch it normally, honest) that the FDIC onl yhad something like a paltry $51B with which to address these kinds of matters? Clearly the fed gov would step in with all of its magic money it has if too many really closed, though.

 

[SleepWalkerX]

Originally posted by: Fern

Originally posted by: SleepWalkerX
http://online.wsj.com/article/...?mod=hps_us_whats_news

Keep an eye on your bank account guys.

The accounts are insured. Unless your balance exceeds the maximum FDIC coverage (still $100K IIRC), no need to worry.

Fern

Actually that's right, I forgot about FDIC. But if FDIC can't cover all the losses (can it even cover the losses of one major bank?) then the Fed will have to print more money to give to the gov to pay everyone that lost their money. In the end it'll inflate our currency tremendously.