Question about Banks and My Money

[GWguy]

Ok, let me play devil's advocate here for a minute, and assume that our local banks and credit unions fail. If the institution is FDIC insured, your money is insured for up to $100K. Ok, good. Assume the bank folds. Is your money accessible ? Can I withdraw my money or are we put on an indefinite hold while they sort things out? I can see months, or years, going by before we can reclaim our money.

Is this thinking justified? Any bankers or financial wizards out there?

 

[nomoney]

Ok, let me play devil's advocate here for a minute, and assume that our local banks and credit unions fail. If the institution is FDIC insured, your money is insured for up to $100K. Ok, good. Assume the bank folds. Is your money accessible ? Can I withdraw my money or are we put on an indefinite hold while they sort things out? I can see months, or years, going by before we can reclaim our money.

Is this thinking justified? Any bankers or financial wizards out there?

I don't think you can withdraw any of your money. If I'm not a moron, I think the FDIC has up to 7 years to pay you back money owned as well. Hopefully with it being an election year it wouldn't take that long though, one could only imagine that outcry if it did.

 

[itsbob]

The last few banks that have failed have been either taken over by the government or bought out by a bigger bank.

Either way, I believe funds were still available, though they may have stopped you from taking ALL the money out to prevent a run.

I'm interested to see what information others have though.

 

[GWguy]

I don't think you can withdraw any of your money. If I'm not a moron, I think the FDIC has up to 7 years to pay you back money owned as well. Hopefully with it being an election year it wouldn't take that long though, one could only imagine that outcry if it did.

Kinda what I was thinking, didn't know the limitations. That would stink..

The last few banks that have failed have been either taken over by the government or bought out by a bigger bank.

Either way, I believe funds were still available, though they may have stopped you from taking ALL the money out to prevent a run.

I'm interested to see what information others have though.

Right, I knew that could be an issue too.

 

[Larry Gude]

Hold...

Ok, let me play devil's advocate here for a minute, and assume that our local banks and credit unions fail. If the institution is FDIC insured, your money is insured for up to $100K. Ok, good. Assume the bank folds. Is your money accessible ? Can I withdraw my money or are we put on an indefinite hold while they sort things out? I can see months, or years, going by before we can reclaim our money.

Is this thinking justified? Any bankers or financial wizards out there?

...up. The VAST majority of banks and credit unions in the US are just fine to being in fantastic shape. Let's not go getting all carried away here.

This is about some giants who scooped up all the bad stuff they could get their hands on. This is a large issue, but it is not a widespread one.

 

[GWguy]

...up. The VAST majority of banks and credit unions in the US are just fine to being in fantastic shape. Let's not go getting all carried away here.

This is about some giants who scooped up all the bad stuff they could get their hands on. This is a large issue, but it is not a widespread one.

Agree. Not at all implying they will, or are about to fail. I was just curious that *if* something like that happened, would someone have access to "their" money.

Purely speculative.

 

[vraiblonde]

...up. The VAST majority of banks and credit unions in the US are just fine to being in fantastic shape. Let's not go getting all carried away here.

This is about some giants who scooped up all the bad stuff they could get their hands on. This is a large issue, but it is not a widespread one.

Right. I personally am not affected by this at all, at least not directly. My mortgage company is fine, my credit union is fine, and my IRA company is fine. My stocks dropped $500 since yesterday, which torks me off, but I know they'll bounce back because I have solid stocks like Wal-Mart, P&G, WMI, etc.

 

[GWguy]

Right. I personally am not affected by this at all, at least not directly. My mortgage company is fine, my credit union is fine, and my IRA company is fine. My stocks dropped $500 since yesterday, which torks me off, but I know they'll bounce back because I have solid stocks like Wal-Mart, P&G, WMI, etc.

Yup, all mine are in good shape too. I won't EVEN tell you what I lost this quarter so far, but I lost $30K the first quarter. Draw your own conclusions!! My stocks will recover as well, just not going to happen overnight.

 

[vraiblonde]

Yup, all mine are in good shape too. I won't EVEN tell you what I lost this quarter so far, but I lost $30K the first quarter. Draw your own conclusions!! My stocks will recover as well, just not going to happen overnight.

See and I have very little money in the stock market. I don't like it, don't trust it, and should really consider cashing in and putting that money toward the principal on my house.

 

[Larry Gude]

Here's...

Agree. Not at all implying they will, or are about to fail. I was just curious that *if* something like that happened, would someone have access to "their" money.

Purely speculative.

...the deal; of the entire economy, 100% of everything, there is only about 30% I think, or there abouts, in terms of real, honest to goodness actual cash. So, *if* everyone wanted their money at the same time, it can't happen.

 

[Larry Gude]

That's...

See and I have very little money in the stock market. I don't like it, don't trust it, and should really consider cashing in and putting that money toward the principal on my house.

...an option, but in terms of cash flow, it doesn't make any sense. If you put $10,000 into the house and don't restructure the loan, then the monthly payment stays the same. So, net cash, the only way that makes sense is if it changes your month to month cash position. Money in houses is useless unless it frees up cash flow.

Stocks on the other hand, you have to own them to play them and there are real gains to be made. Buy what you trust and stop looking at them.

 

[Dymphna]

It's amazing what youi find on snopes...

snopes.com: Federal Deposit Insurance Corporation (FDIC)

They say that FDIC is usually good for it by the next business day.