Finance question

[Bryan]

I'm no finance expert, so I'll ask you:

Some people here at work are going to their banks in the next few days to pull all of their $$ out of their accounts. They fear that their bank may go under and that the FDIC is not far behind (or won't have the $$ to pay them). My question is this: is this possible, and who backs the FDIC? Do the banks pay them a percentage to insure the money? From my understanding, the FDIC has never been able to not return someone's money.

[Belle]

i am also no finance expert, but I would think if people started pulling their money out of the banks, we're all in big trouble.

[Johnny Utah]

Do not want to walk into LCTW's bank when he is having a bad day. That's my financial advice.

[Brad_Lee]

The F in FDIC is federal. So the government backs it. There is no reason to pull your money.

[Bryan]

i am also no finance expert, but I would think if people started pulling their money out of the banks, we're all in big trouble.

I just think it's crazy these people are pulling their money and just going to go put in under their mattress or something.

[remo.williams]

i would see another 'bail out' coming if that happened.

and it wouldn't be from the US government. that's why I picked up a copy of "how to learn chinese in 5 days".

i kid. I have no idea really. but im sure its possible that they could go dry.

[Belle]

i wonder what the rest of the world is thinking of us right now.

[Brad G.]

I just think it's crazy these people are pulling their money and just going to go put in under their mattress or something.


Can I get names and addresses here?

[Bryan]

The F in FDIC is federal. So the government backs it. There is no reason to pull your money.

I know what it means, but where do they get their $$ (taxes, banks themselves, etc???)

[Bryan]

Can I get names and addresses here?

I'm not sharing with anyone...unless you're a locksmith.

[remo.williams]

got this online, so take it for what its worth

If the FDIC were to run out of funds (the IndyMac failure drained out approximately 10% of their funds), then technically, depositors would be without recourse. Nothing in the FDIC statute strictly requires the US government to give the FDIC any extra money in the event that it becomes insolvent.

That said, however, we can expect that the Congress would do anything within their power to keep the FDIC funded, in order to avoid a general panic the likes of which we have not seen since our grandparents' generation. But if the banking crisis were to come at the same time as a general funding emergency, or a collapse of the US dollar on international currency markets (such as might occurr if China were to decide to dump its holdings of US treasury bonds), then the government might not be able to act, despite its desire to do so.

As far as where the actual money for such a bail-out would come from: Essentially, the United States would borrow it, just like it borrows enormous amounts of money to operate each year (hence the budget deficit). The total liabilities of the United States government are enormous, and most of our debt is held by the central banks of foreign countries. That is why the government must be careful about giving too many bailouts: foreign investors might become worried that we are printing too many dollars if the value of the dollar falls further. If the value of the dollar falls too low (because we printed too much money trying to bail everybody out), foreign countries might begin demanding payment on our debt by cashing in their treasury bonds. Since the total debt of the nation is not repayable, this could cause the value of the dollar to collapse, rendering any FDIC payments irrelevent.

[CashFlow]

What are they going to cash out their 401k too? Buy a big safe and a shotgun too I guess. Sheeple.

[Picante]

Tell your co-workers that they hate America if they intend to do this.

[fatkid]

just because my interest is peaked.......what industry do you work in?

[RolandC]

If everyone pulls out their money, then you can be assured that the banks WILL go under.

[beercats2000]

Tell your co-workers that they hate America if they intend to do this.


No shit. Retards.

[Johnny Utah]

Same dumbshits stop paying their mortgage if their lender files for bankruptcy.

[Sodbuster]

Same dumbshits stop paying their mortgage if their lender files for bankruptcy.

These are probably the same rocket scientists who thought it would be a good idea to borrow the maximum amount their bank would loan them.

[Senior Weaner]

I'm no finance expert, so I'll ask you:

Some people here at work are going to their banks in the next few days to pull all of their $$ out of their accounts. They fear that their bank may go under and that the FDIC is not far behind (or won't have the $$ to pay them). My question is this: is this possible, and who backs the FDIC? Do the banks pay them a percentage to insure the money? From my understanding, the FDIC has never been able to not return someone's money.

put your money into a credit union and then shut the fuck up


i also suggest for you to buy low and then sell high

[My Internet Persona]

Banks (as well as credit unions) are required by the governing body (FDIC for banks and NCUA for credit unions) to keep a certain percentage of their funds in cash reserves. This money is held by the governing bodies for events like these. I worked in the banking industry for a while, and I have told countless people over the past few weeks that banks are the safest place to keep money. Now if a bank, like WashMu, goes under, it may take a few days for you to get your cash and open a new account somewhere else, but it will happen.

[itsvon]

what retards

[Bryan]

just because my interest is peaked.......what industry do you work in?

Marketing/Advertising. But the people who are talking about this are not very sharp individuals. That's what peaked my curiousity about this, it was just unreal to me that they're doing this.

[Picante]

Seriously, your co-workers really piss me off. I really want to find out where you work so I can personally come down, kick them in the nuts, and then bitch slap them.
Someone needs to make them realize that they are not protecting themselves, but actually contributing to the downfall of our economy by doing this.

[Bryan]

what retards

you don't have to work with them every day.

[fatkid]

Marketing/Advertising. But the people who are talking about this are not very sharp individuals. That's what peaked my curiousity about this, it was just unreal to me that they're doing this.

i full well expected to see them working in a union job.

I heard this from a 'friend' of mine who works at AB.

I told him he was a uneducated retard who needed to do some reading before making a stupid move like that.

He was less than happy with me.

[Bryan]

i full well expected to see them working in a union job.

I heard this from a 'friend' of mine who works at AB.

I told him he was a uneducated retard who needed to do some reading before making a stupid move like that.

He was less than happy with me.

I said something similar and was met with "when you lose your money, don't come to me asking for a loan".

[Wilt223]

Please someone put these people out of there misery. Stupid people doing stupid things are the reason this economy is in such a fucking mess. Granted lenders are to blame for approving people for such ridiculous loans but people need to be a little more educated when it comes to there finances, just because a lender approves you for a 500k mortgage does not mean you can afford a 500k mortgage. So lets pull all $200.00 I have to my name out of the bank. Fucking retards

[RawMeat]

The FDIC was created so people don't do this kind of retarded crap, because the real threat to banks is this kind of retardery of pulling all of one's money out of the bank.

Obviously, if you have over 100K at a bank, because you have spread 100K over a bunch of banks and you just have so much god damn money that you have to have more than 100K at a single bank, then one is probably justified in pulling some money out at this point. But I imagine that you are probably talking about retards that think their 150 dollar savings account at Commerce Bank is their "safety net."

Most of the people with alot of money -- I hope -- are smart enough to realize that the FDIC will have enough to cover them or, even if they don't, it won't matter where you have stuffed your money, because we are in the "bash in your neighbor's skull and feast upon the gooey innards" (or whatever that simpsons' quote is) time.

I love that the government has specifically created a program to stop retards from doing shit like pulling their money out of the banks and actually causing a collapse, but people are too stupid to realize this and are planning to pull their money out.

[gomez]

these are the same idiots who went and bought gas before ike because "someone who knows their stuff" said gas prices were going up to 5 bucks...

[CashFlow]

these are the same idiots who went and bought gas before ike because "someone who knows their stuff" said gas prices were going up to 5 bucks...

and prices did spike up that much, because of people rushing into the market with the same mindset. Self-fulfilling prophecy.

George Soros has made a pretty good living on that phenomenon alone.

[stewy]

pull out... that does not sound very manly to me.

[B.A.]

These people all need a swift kick to the nuts. Then repeat the process a few more times.

[Trooper McCue]

FDIC insures up to 100% under $100000, after that they only guarantee 10%.

So yeah, most people don't need to worry.

[Master Splinter]

Um, you can't just walk into the bank and withdraw $100,000.

[nxt]

Um, you can't just walk into the bank and withdraw $100,000.

What, do they make you go to the atm for that?

[jcamp]

Um, you can't just walk into the bank and withdraw $100,000.

Pretty sure you can...

[Master Splinter]

Pretty sure you can...


I don't think you can.

I'm not saying it couldn't be arranged to happen some time in the future. But I don't think I could walk into the bank, fill out a withdrawal slip for $100 grand and walk away with that cash, without having some prior contact with the bank about the transaction.

You ever gone to the bank and had them tell you that they were out of cash?

That's because they put limits on cash transactions.

Or so, I would expect they do. Perhaps LCTW can enlighten us all.

[Harley]

FDIC insures up to 100% under $100000, after that they only guarantee 10%.

So yeah, most people don't need to worry.

Is this per person or per account. For example, the same person has 2 $100,000 CD's in the same facility. Would they be protected for $110,000?

[Master Splinter]

Is this per person or per account. For example, the same person has 2 $100,000 CD's in the same facility. Would they be protected for $110,000?


Same registration?

[Harley]

Same registration?

Yeah, Same name and ID#.

[Master Splinter]

Yeah, Same name and ID#.

Then, yeah. $110,000.

I actually thought it was 50% after $100,000, but I could be wrong.

And IRA's are actually protected up to $250,000

[Harley]

Then, yeah. $110,000.

I actually thought it was 50% after $100,000, but I could be wrong.

And IRA's are actually protected up to $250,000

Thanks

[Master Splinter]

Thanks

If you have concern, go talk to your banker about it. I believe there are ways to stretch out the FDIC insurance, by adding beneficiaries. Not sure of exactly how it works, but I know my parents were able to do it.

[Harley]

If you have concern, go talk to your banker about it. I believe there are ways to stretch out the FDIC insurance, by adding beneficiaries. Not sure of exactly how it works, but I know my parents were able to do it.


I am not concerned for myself but I have an elderly family members that worries about everything anyway and just spent the past 2 days listening to the networks talk all day about how bad the situation is. Thinks that she is about to lose all of her money that she has in bank.

[Master Splinter]

I am not concerned for myself but I have an elderly family members that worries about everything anyway and just spent the past 2 days listening to the networks talk all day about how bad the situation is. Thinks that she is about to lose all of her money that she has in bank.


I need to target some ridiculous product to old people. They apparently will believe anything they read or see on television.