Has the FDIC ever been actually used?

[TallBill]

The FDIC is obviously a good thing for financial security but over time the $100,00 insurance is decreasing in importance. Also, has a bank crashed and had its customers actually use it to recoup some of their money?

 

[Nitemare]

I thought it was for banks that got robbed and such, like safety deposit boxes, corrupt S&L peeps...

 

[2Xtreme21]

Originally posted by: Nitemare
I thought it was for banks that got robbed and such, like safety deposit boxes, corrupt S&L peeps...

I was under the impression that if the bank lost all of its (your) invested money in something like a stock market crash, each person who has money in the bank is insured up to $100,000.

 

[TallBill]

Originally posted by: Nitemare
I thought it was for banks that got robbed and such, like safety deposit boxes, corrupt S&L peeps...

I suppose it could, but usually the amount that is taken in a robbery is covered by the bank's insurance. It's supposed to cover a complete bust of a bank, like during the Great Depression. Banks invested money into the market, the market tanks, and thus the bank has no money to give it's customers who all make a mad dash to withdraw.

 

[Kelvrick]

I don't think safety deposits are covered. The only protection you get is the bank vault door and security procautions.

 

[darkxshade]

considering I've never heard of any cases where anyone had to claim FDIC(since such investments are pretty much 99% safe), I wonder how much the FDIC has in its coffers from receiving insurance payments? I assume banks pay FDIC some sort of premium to have this.

 

[K1052]

The FDIC rules for members also help keep the banks adequately liquid.

 

[Epic Fail]

The Fails

 

[EagleKeeper]

Seems like many of you were not around in the mid 80's and not financialy aware in the 90s

 

[Dacalo]

Originally posted by: Nitemare
I thought it was for banks that got robbed and such, like safety deposit boxes, corrupt S&L peeps...

Not to be an ass, but I thought you were joking for a second...

 

[TallBill]

Originally posted by: EagleKeeper
Seems like many of you were not around in the mid 80's and not financialy aware in the 90s

I was 3 in the mid 80's and 13 in the mid 90's Not everyone is old like you.

Originally posted by: yamadakun
The Fails

Nice find! Do people with loans get freebies out of the situation or does another bank absolve the loans?

 

[NL5]

Originally posted by: TallBill

Originally posted by: EagleKeeper
Seems like many of you were not around in the mid 80's and not financialy aware in the 90s

I was 3 in the mid 80's and 13 in the mid 90's Not everyone is old like you.

Originally posted by: yamadakun
The Fails

Nice find! Do people with loans get freebies out of the situation or does another bank absolve the loans?

I'm sure someone buys the loans when the bank goes bankrupt.

That list is just since 2001.

 

[imported_Lothar]

Originally posted by: EagleKeeper
Seems like many of you were not around in the mid 80's and not financialy aware in the 90s

Not many of us are old hacks.

 

[Quasmo]

Originally posted by: yamadakun
The Fails

Damn one of those banks is in my hometown.

 

[ponyo]

The most recent I remember is NetBank. I've fond memories of that bank from the dot com days.

 

[IAteYourMother]

Originally posted by: Nitemare
I thought it was for banks that got robbed and such, like safety deposit boxes, corrupt S&L peeps...

seriously?

 

[Praetor]

The bank my parents used back in the late 80's went under, and I remember them freaking out about the mortgage and the fact that all the money they had was in that bank. They were "rescued" by the FDIC, if memory serves.

 

[FoBoT]

Originally posted by: Naustica
The most recent I remember is NetBank. I've fond memories of that bank from the dot com days.

i had a netbank account for a while

i remember when they raised the limit to $100,000

anyway

1988: 200 FDIC-insured banks fail; FDIC loses money for the first time.

2006: Deposit insurance, as of April 1, for Individual Retirement Accounts (IRA) increased to $250,000.00. This is separate from the regular $100,000.00 cover- age of your other deposit accounts.

http://www.cbbwi.com/fdic.htm

 

[alkemyst]

Originally posted by: 2Xtreme21

Originally posted by: Nitemare
I thought it was for banks that got robbed and such, like safety deposit boxes, corrupt S&L peeps...

I was under the impression that if the bank lost all of its (your) invested money in something like a stock market crash, each person who has money in the bank is insured up to $100,000.

It goes something like that...however; should there be another crash that $100k would be worthless.

The scary part is it's mostly trust in the system now that keeps us all from being slaves.

If the euro replaces the dollar (I see it happening) in global economy then that would be us on the edge of the next great depression.

 

[Gibson486]

Originally posted by: Kelvrick
I don't think safety deposits are covered. The only protection you get is the bank vault door and security procautions.

They are not. In fact...banks are never supposed to know what are in those boxes.

 

[alkemyst]

Originally posted by: Gibson486

Originally posted by: Kelvrick
I don't think safety deposits are covered. The only protection you get is the bank vault door and security procautions.

They are not. In fact...banks are never supposed to know what are in those boxes.

QFT...not all accounts outside of them are covered either. FDIC is pretty specific to what's covered at the bank.