https://www.yahoo.com/finance/news/close-190-banks-could-face-163717073.html Swapna Venugopal Ramaswamy, USA TODAY Thu, May 4, 2023 at 10:54 AM PDT Regional banks are failing because the Federal Reserve’s aggressive interest rate hikes to tamp down inflation have eroded the value of bank assets such as government bonds and mortgage-backed securities.
And if the Fed DOESN'T hike the rates, inflation will erode the value of YOUR assets, and everyone else's, too. I don't CARE if the bank survives - as long as I do. That's what deposit insurance is for. Why should I care about the bank? They don't care about me. They lie and say they do, but... I KNOW. I keep an eye on them - but that doesn't mean I care.
It appears that banking crisis is not over. On the contrary it may just be getting started? The question everyone should be asking is how bad is it likely to get? Should people take their vital documents out of deposit boxes, in case the access will be blocked? Not saying people should panic, but prepare for some uncertainty, maybe diversify with opening secondary account with another back?
Our deposits are insured for up to $250,000. If you want to deposit more then put it into multiple banks. If you have so much to deposit that putting your money into too many banks that it's a big hassle then you have my permission to be bothered and worried. Better yet, just hire someone else to be bothered, worried and hassled for you!
I guess in our day and time a lot of banking done online. A person may use online banking to handle daily transactions, like depositing a check ( they still use checks?) or transferring money to a savings account. But you’ll need a backup plan when you need in-person services. Yet even people with small deposits while FDIC insured have a reason to be worried. Not all banks follow the rules. And its devastating when you payments decline and you come to a closed branch. Bank is federally insured and decides to close a branch, it must notify customers 90 days ahead of the closing date, according to the Federal Reserve. bank should also post a notice at the branch location. If this happens to customers, they can choose to bank at a nearby branch or online. However, if a branch closes and online banking or visiting another branch is inconvenient, they’ll need to find a different place to store the money and deposit box if they have one. If the money is in a trust or issued through a broker or employer plan, the FDIC will need supporting documentation -- and it may take longer to receive the funds. Between 2008 and 2020, more then 13,000 branches closed (approximately 14% of all banks) shut down across the US, according to the National Community Reinvestment Coalition.
Agree, Bank closing is much worse but usually bank closing comes with branch closings if no other bank takes over. I experienced it twice in the 90s and it was frustrating. For some not having access to a physical bank is inconvenient -- and it can make managing your money more expensive.
I thought I read that the FDIC insures 250k per person (SS#) not per bank account. There used to be a clause that they can take up to 99 yrs to pay you.l back. But not sure anyone really read what the rules are.
Bit different here in Canada. It's $100,000 per eligible deposit. Separate accounts and separate banks are acceptable ways to maximize (i.e. multiply) your coverage. And for Credit Unions (I LIKE them!) it's more - at least in my province - Ontario: "The Financial Services Regulatory Authority of Ontario (FSRA) provides insurance coverage for your member's deposits, in the unlikely event that your credit union fails. Members qualify for up to $250,000 worth of coverage for their non-registered accounts and unlimited coverage for their registered accounts." (Registered accounts are things like Registered Retirement Savings Plans, Tax-free Savings Accounts etc. -- basically any tax-advantaged savings thingies we have here.) Same deal as with our banks - using multiple deposit types and multiple Credit Unions is OK. And 99 years to pay? No way! "CDIC's goal is to reimburse funds from chequing, savings and joint accounts to depositors within days of the date of failure." (Emphasis mine - J.)
Even if they do pay you back within days, that gap can be enough to completely derail a person's life. It's a huge PITA to open a bank account as an adult if you don't already have a bank account. I've kept accounts at multiple banks for years because of these kinds of situations.
Maybe - but it's far better than the 99 years that the US banks required, according to Michigan68. That's why I posted about it. I doubt if that kind of payback can be done instantly, even now. Maybe, where you live. I have no idea. I never had that trouble, here. Neither did my kids and adult grandkids. Parents knew, when their kids were in their teens, to help get them social insurance numbers etc. because they'd need them - for banking and for part-time jobs. Also, that's one of the things I like about credit unions. They'll actually HELP you join up. Some banks feel a bit prissy -- looking down their noses etc. I've pretty well stuck with Credit Unions for 50 years, now.
It's a new(er) thing in the US. To "prevent terrorism", it's quite difficult to open a new bank account if you don't have one already. If you don't have a parent to help you, by adding you to an account, you might be out of luck.
Thanks. Now I understand. Not the same here - at least for the average consumer. After 2001, they ask you if you if you held / hold office in any foreign corporations. One question. That's it. (If "yes" - more questions.) Government agencies staffed with professionals are equipped to find would-be terrorists and banks co-operate with them fully. Joe / Jill average does not see it - but the system is always at work.
We have a lot of people from the Middle East here - almost 2% of our population. In recent years, we've welcomed a lot of Syrians, since their own country became unsafe for them. Overwhelmingly our former Middle Eastern citizens are peace-loving, good people. We've had terrorists in our midst - some few. Some were home-grown. Our agencies do a pretty good job with anti-terrorism. Google: Is there a large Middle Eastern population in Canada? "According to the 2016 Census, there were 690,000 Canadians, or 1.9%, who claimed Arab ancestry. According to the 2011 census there were 380,620 Canadians who claimed full or partial ancestry from an Arabic-speaking country. The large majority of the Canadians of Arab origin population live in either Ontario or Quebec."
It's apparently per bank, at least according to multiple Google sources. quote: How can I insure more than 250k? Open an account at a different bank. ... Add a joint owner. ... Get an account that's in a different ownership category. ... Join a credit union. ... Use IntraFi Network Deposits. ... Open a cash management account. ... Put your money in a MaxSafe account. ... Opt for an account with both FDIC and DIF insurance.
Hopefully! Build enough, the price goes down. (I mean, it's not quite that simple, but that's the gist of it.)
Yeah, I understand the curve - took that in economics. But so did builders. They're very careful to price according to the max. revenue curve. Yes, there's a possibility the price-per unit curve could go down a bit as more workers, more man-hours are applied to the job to increase production. But the builders are very careful with expenses - they know how to tie production to the max. revenue point and stop right there. I know they do. A couple of builders were in my economics class! In fact, one very successful builder taught economics to evening classes, at Community College. I wasn't in his class, though - by this time I was over at the Uni, learning economics from an Iranian-Canadian lady - a former engineer, who earned her MBA and migrated successfully into the business and teaching worlds. Great economics teacher -- she knew how EVERYTHING worked. Maybe that was from her engineering background.
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/svb-signature-racked-up-some-high-rates-of-uninsured-deposits-74747639 A list of US banks whit hi rates of uninsured deposits: The rate of uninsured deposits in this analysis is based primarily on bank subsidiary estimates made in regulatory call report filings, and it may include items such as intercompany deposits, collateralized deposits that are backed with securities and other deposits structured to qualify for insurance and can differ from parent company GAAP filings, which may exclude such items.
