Miscellaneous Rumbles

For once, I’m glad I’m broke!

1

I get home Friday night to an email stating that one of my banks went belly up! This account I use for my VA check and ebaying (I only had $30.00 in it at the time) So, yesterday had to find a new bank, call the VA to have my instant deposit re-routed for April.. it's still a mess. March's check I have to pickup at another bank that the FDIC re-routed it to. I really feel sorry for the businesses and the Sr's that had their accounts and safety deposit boxes there. All checks that were drawn on your acct, were sent back (I'm glad I didn't have any out) with a letters stating the bank went belly-up. I know I'm just venting, but it does suck!

2

Sad to hear, I'm sure a lot of people got screwed by that, if only temporarily. Glad to hear it didn't cause a huge impact for you, but still a PITA.

Sometimes I wonder if I should just keep all my money in my mattress or something. Not that there's much to worry about. The good thing for us is my wife works for our credit union, so I'm sure we'd have a heads up if anything happened.

3

I'm with a credit union, and that's all i heard when i switched there....they're not protected like banks are, if they go t$$% up, you're out of luck.....your money isn't safe anywhere.

Truth be told, for the amount of interest you get vs. bank fees, you might as well put it in your mattress. :D

4

jukebox says "For once, I'm glad I'm broke!"

Reminds me of WC Fields asking the bartender, "Was I in here last night and did I spend $20?

Bartender says, "Sure."

Fields says "What a relief. I thought I'd lost it."

5

Most of my friends only keep enough in the bank to pay the bills. There isn't enough FDIC insurance in the world to cover what will happen when the dominos start to fall.
http://kingworldnews.com/ki...

6

My Social Security check is automatically deposited into our joint checking account. I have always had a twinge at doing that and now, a story like this makes me even more nervous about it.

I'm ignorent about this. If a bank does go belly up, doesn't the FDIC guarantee to reimburse all account holders in said bank as long as the account has at or below the insured amount?

Also, wouldn't the contents of the safety deposit boxes still be the property of those who rented them and have access to them even though they would most likely need to go through a lot of red tape?

7

You know what they say: If you keep all your money in your mattress, you'll never earn interest, but you'll always have something to fall back on. BA-DUM-BUMP!

9

Jesus H... the times we're livin in.

10

As I recall, 1-800-Mattress went into bankruptcy, so not sure your mattress is the answer.

In reality, the FDIC protects you against any losses up to $100k, so while this may be an inconvenience to those who had checks returned, it should be no more than that.

While the FDIC doesn't insure credit unions, they have their own insurance fund - the NCUSIF - which acts the same way. So, if you're looking for a cost-effective alternative to banks, I wouldn't hesitate to explore that option.

Obviously, if you don't trust that the US will remain solvent (strongly unlikely when they can print money), the only alternative is to physically hold gold in your own safe. Of course if it ever came to that, the global chaos would make even that questionable. At that point,I guess the best option is to have a gun and a few hollow body or acoustic guitars, as the electricity grid will likely be shut down.

11

If you have money, spread it over several banks. Include a privately owned one and a government owned one, if possible. Maybe a foreign one too, like Swiss.

12

The FDIC is protected up to $250,000.00 You SS or in my case, VA check, were routed to the nearest US Bank (it's just the hassle opening a new acct somewhere else and then go to US bank to pick up my check. You then have to hang on the phone with the VA or SS to get the new bank on their system for in this case, April's check. You have to make an appointment to claim anything in you r safety deposit box. (And who knows if IRS is standing over your shoulders) All checks on those acct were returned to the senders stateing that they were not any good because the bank folded. (The poor businesses) The bank has been crawling with FDIC members, FBI and State police since Friday at $pm. The employees weren't even told that the bank was closeing until 4pm Friday, when the FDIC closed the bank. I'm thinking of opening an acct with Mason.....Mason fruit jars.

13

I'm just glad this isn't my main checking account, like I said it was just my splash account.....Thank god!!!!

14

The FDIC is protected up to $250,000.00 You SS or in my case, VA check, were routed to the nearest US Bank (it's just the hassle opening a new acct somewhere else and then go to US bank to pick up my check. You then have to hang on the phone with the VA or SS to get the new bank on their system for in this case, April's check. You have to make an appointment to claim anything in you r safety deposit box. (And who knows if IRS is standing over your shoulders) All checks on those acct were returned to the senders stateing that they were not any good because the bank folded. (The poor businesses) The bank has been crawling with FDIC members, FBI and State police since Friday at $pm. The employees weren't even told that the bank was closeing until 4pm Friday, when the FDIC closed the bank. I'm thinking of opening an acct with Mason.....Mason fruit jars.

– jukebox

The FDIC is protected up to $250,000.00 You SS or in my case, VA check, were routed to the nearest US Bank (it's just the hassle opening a new acct somewhere else and then go to US bank to pick up my check. You then have to hang on the phone with the VA or SS to get the new bank on their system for in this case, April's check. You have to make an appointment to claim anything in you r safety deposit box. (And who knows if IRS is standing over your shoulders) All checks on those acct were returned to the senders stateing that they were not any good because the bank folded. (The poor businesses) The bank has been crawling with FDIC members, FBI and State police since Friday at $pm. The employees weren't even told that the bank was closeing until 4pm Friday, when the FDIC closed the bank. I'm thinking of opening an acct with Mason.....Mason fruit jars.

– jukebox

FDIC insurance is good for $100,000. Certain retirement accounts are insured for $250,000 beginning in 2006. A husband and wife with a joint account can be insured for $200,000 ($100,000 per person), but check with your bank manager to make sure the details are worked out. Trust me, I've been through this and ended up spreading it around to several banks. Safety deposit boxes are not guaranteed "safe" under any circumstances. The rules can change to suit the PTB at any time and they can change quickly. And, yes, everything in that safety deposit box is subject to the government's scrutiny and will be taxed accordingly. The only thing I would keep in a SDB are paperwork, marriage certificates, and passports. You want to keep Grandma's diamond necklace in there, feel free, but understand the risks. Much better alternatives to Mason fruit jars. Think PVC piping with end caps cemented on. Much more creative ideas than that floating around as well. Not for burying cash of course. If (and when) the dollar collapses, that paper fiat currency will be worth nothing. No fiat currency in history has ever survived and there is no reason to think that ours will. The price of oil and food is not going up, the value of our dollar is dropping. Fast. Do your own due diligence, but you might want to start now. I see something bad happening no later than 2015. I hope I am wrong.

16

I was just informed NCUA insures each acct. up to 250k. Seems like just another reason to support credit unions.

17

i went to school in Rhode Island and lived there for several years. In the late 80s the state fund that insured banks went belly up because the director embezzled millions of dollars. As a result the governor closed all state banks that couldn't qualify for FDIC insurance. They didn't qualify because of too many questionable loans to "friends" of the bankers. People with money in those banks lost it all. Not surprisingly some people were tipped off ahead of time & withdrew their money the day before. (If you spent any time there you will not be surprised those folks all had Italian surnames. But of course there's no such thing as organized crime.)

18

I'm no expert, but I believe Obama permanently raised the FDIC limit from 100K to 250K via Dodd-Frank. Also, it appears that there is no limit if the account is non-interest bearing... also as part of Dodd-Frank.

Link...

19

@ "jukebox"

Mike, I remember hearing about that bank being shut down. didn't realize that you were involved. yeah, good thing you didn't have too much money in there. but I thought Barbers make alot of money in their "clip joints". ha ha :D

hey, have you gotten your room reservation yet for the KC/Cowtown Roundup ?

brent

20

The email that I got from FDIC state that we are insured up to $250,000.00

Brent no not yet, I have to much things goin on with the wedding and stuff, I don't know if i can make it again. I might have to try for Nashville.

The bank was Home Savings of America...Little Falls, MN branch. They were own by some investers from California....What does that tell you?:D :D

21

The fact that they couldn't find a buyer for that bank tells you it was in very bad shape. Usually someone will buy a failed bank to get the customers.


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