Would you bank with WaMu or CountryWide?
- Thread starter tosugrad
- Start date
Sure. FDIC.
Stay inside the insurance limits of FDIC and no problems, do not exceed them.
i thought usualy the fdic has everything availible after the weekend(assuming they take over on a friday for example) would think its more that people just freak out and make it worse by taking all thier money out of the bank. maybe those ones are the ones clinging to guns, religion, and now cold hard cash?
The fed is taking the necessary precautions to get funding from the treasury quickly when the banks fail [not if, many will fail].
Regarding CFC specifically, BAC "has their back" and I wouldn't worry about it short term. WAMU on the other hand is on life support. As long as you are with FDIC limits regarding those investments specifically, don't worry about it.
I haven't checked very recently, but check everbank.com. I use them for stuff like this most of the time and if you are contributing decent sums of money they are usually very competitive. They are also extremely sound right now, actually looking to buy other banks.
Regarding CFC specifically, BAC "has their back" and I wouldn't worry about it short term. WAMU on the other hand is on life support. As long as you are with FDIC limits regarding those investments specifically, don't worry about it.
I haven't checked very recently, but check everbank.com. I use them for stuff like this most of the time and if you are contributing decent sums of money they are usually very competitive. They are also extremely sound right now, actually looking to buy other banks.
I use wamu, as they're convenient for my area (SoCal), I only keep a checking account there, the rest of my accounts are at Etrade (brokerage, IRA, money market)
The Indymac failure was paid off in my client's accounts within 10 days. The interest was calculated only to the day of failure, so the "loss" to those within the FDIC limits was those 10 days of interest.
I use Countrywide and I had the same concerns. I spoke to a few people and came to see that Countrywide mortgage (which is struggling) is separate from Countrywide banking. Their banking division is doing just fine and if Countrywide mortgage starts to look like it will tank, they will just ditch it. I wouldn't hesitate to use Countrywide for banking services only.
I'd steer clear of both. Nobody knows what the financial status is of these companies and how close they are to really going bankrupt.
I still contend at least one of them will go defunct here soon.
AND DON'T THINK THE FDIC WILL SAVE YOUR ASS. One of these banks going under will bankrupt the FDIC many times over... which, in that case, the fed will just print more money, and sure you'll get it back eventually (keep in mind there is no formal time table they have to repay you in... could be 6months, a year, who knows?), but and as far as getting your money back, you'll get the same amount, but with the extra money printed to cover the difference your 100k ain't gonna actually be worth 100k anymore.
I still contend at least one of them will go defunct here soon.
AND DON'T THINK THE FDIC WILL SAVE YOUR ASS. One of these banks going under will bankrupt the FDIC many times over... which, in that case, the fed will just print more money, and sure you'll get it back eventually (keep in mind there is no formal time table they have to repay you in... could be 6months, a year, who knows?), but and as far as getting your money back, you'll get the same amount, but with the extra money printed to cover the difference your 100k ain't gonna actually be worth 100k anymore.
FDIC is a joke....
Your a fool if you think it will protect you.
I still bank with WAMU. There is about 100 branches in a 10 mile radius from me. They are BIG here.
Your a fool if you think it will protect you.
I still bank with WAMU. There is about 100 branches in a 10 mile radius from me. They are BIG here.
Me too, and since I move money through them pretty fast I rarely have much more than a couple grand in the accounts I have there. It wouldn't kill me to have to wait a couple of weeks for FDIC to cover.
Just curious. How/why did you come to this conclusion?
Generally speaking, insurance is designed as a safeguard against rare occurrences. How well the FDIC protects deposits comes down to the amount that the FDIC holds in reserve. In June 2007, the FDIC’s reserve ratio was 1.2%. That means that the FDIC has $1.20 for every $100 it insures. While FDIC insurance would protect your deposits in the event that your bank goes under as an isolated case, it’s not designed to handle an extensive banking-system collapse.
from: http://www.dailykos.com/story/2008/8/28/21046/0556
Thanks. I understand and appreciate what you wrote. Perhaps I am not a "fool" because I don't think there is going to be a massive bank failure rate. (We'll see.) Indy-Mac took 15% of the FDIC funds as a $40 billion dollar instution, and the third largest in US history. The seven other failures this year took 2% of the funds. The numbers I found at U.S. News stated that between FY 2000 - 2007 there were 32 US bank failures, and in two of those years, there were no failures. This is compaired to the years 1980 - 1989, there were 2,036 US bank and S&L failures.
As you stated, the current FDIC ration is is 1.2%. The FDIC is required to raise premiums if the ratio falls below 1.15%, or is forcast to do so within the next six months.
If I thought there was a massive failure in the future, I wouldn't have my money in any bank.
Thanks for your reply.
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No no no... Just a lowly daytrader that lives in the same town as him.
But I did get to have my picture taken with him last year and he paid for a steak dinner... which was nice
AND I KNOW WHERE HE LIVES!!! DUN DUN DUN.... :tongue:
But I did get to have my picture taken with him last year and he paid for a steak dinner... which was nice
AND I KNOW WHERE HE LIVES!!! DUN DUN DUN.... :tongue:
As I mentioned above, Countrywide Mortgage (which is in financial trouble) has very little to do with Countrywide Banking (which is doing ok) other than name. I've confirmed this with several people. If the Mortgage part of Countrywide tanks or go bankrupt, Countywide will simply ditch it from their umbrella. They won't drag down the entire banking division along with it. Your money is as safe with Countrywide as it is with "insert name here" bank. Just wanted to clear this up as I researched this myself. I have $100K sitting in Countrywide right now so I had the impetus to make sure my money was safe. I found no reason to have to move it anywhere.
No no no... Just a lowly daytrader that lives in the same town as him.
But I did get to have my picture taken with him last year and he paid for a steak dinner... which was nice
AND I KNOW WHERE HE LIVES!!! DUN DUN DUN.... :tongue:
We should grab lunch next time I am down there.....
I bank at WAMU because their computer still shows me as an employee. Hence I don't get charged any fees...safe box...accounts...etc. Been ages since I worked there. :tongue:
Very good to know. I must've missed that above. I'm sure what you say is correct and they probably would ditch it. I just don't know how many of the institutions are in the same boat as CountryWide.
I just always err on the side of caution.
osugrad97 - We'll make it happen!
