A Lot Of Bank Failures

**disneysteve** · 01-29-2011, 11:59 AM

For most people, a bank failure is relatively insignificant. Either another bank takes over or the FDIC pays out to cover your deposits. You might be unable to access funds for a few days so that could be a problem if you have no other source of money. Don't keep everything in one place and you'll avoid that.

One time when it can matter is if you have a CD with the failed bank. When a new bank takes over, they are not obligated to continue paying the same interest rate. That happened to my mom last year. The new bank sent a notice to let her know the rate was dropping sharply but giving her the opportunity to pull the money out with no penalty (which she did).

**Ima saver** · 01-29-2011, 12:51 PM

That is the same thing that happened to me, Steve. I had some C.D's locked up at 4% rates. The bank failed and they dropped the rate to almost nothing. I was allowed to take them out and find a better rate. I have been involved with two failed banks this year and have not lost any money, thank goodness.

**97guns** · 01-29-2011, 02:36 PM

keep taking your chances and their gonna run out, wait untill B of A fails then we'll start having some fun.

**rj.phila** · 02-01-2011, 06:58 AM

ill never forget the day wa-mu went under. i had transferred a substantial sum into a new wa-mu savings acct for the interest rate-THE DAY BEFORE. i was literally calling them at 9am to verify the wire went thru went npr announced it, as i was on hold. stressful few days!

**wincrasher** · 02-01-2011, 01:11 PM

My mortgage holder, AmTrust, went under a few months back. Got a nice letter from the FDIC saying what happened and not to freak out, then the next day got a nice letter from MetLife saying they took over my mortgage and all the new particulars. That was it.

**Aleta** · 02-02-2011, 07:08 AM

Although I know that they are FDIC insured and that another bank will take them over; I'm still concerned about having a large check that I paid out being cleared. It can happen and I have heard it happening to a lady who's morgage was late because of it. It's more the inconvenience.

**scfr** · 02-04-2011, 07:55 PM

I agree that it's worthwhile to pay attention to these things. I've had a couple banks go under, and like you I did not want to have to deal with the possibility that a check would not clear so I stopped writing checks on those accounts when the handwriting was on the wall. Not every bank is taken over; if a bank is just shut down outstanding checks will be sent back.

My biggest concern these days is that the bank where we have our safe deposit box is not doing very well. I used to keep my Passport in my safe deposit box but decided it would be better to keep it at home instead. My husband's family lives overseas and my FIL is not in the best health. I would not want to be trapped in the US unable to go overseas because my Passport was locked inside a failed institution.

**97guns** · 02-05-2011, 08:10 AM

Originally posted by scfr View Post

My biggest concern these days is that the bank where we have our safe deposit box is not doing very well. I used to keep my Passport in my safe deposit box but decided it would be better to keep it at home instead.

- could just be rumor but i dont trust them

BELLACIAO - Homeland Security To Confiscate Bank Safe Deposit Box Contents - notepad

**MrPolarZero** · 02-06-2011, 09:52 PM

That is rather disturbing. But some say that these bank failures and mergers are just normal. More like the system trying to balance itself out.

**Aleta** · 02-07-2011, 08:01 AM

I don't think that you're supposed to put any of the items that was listed above in 97 guns. Our bank told us quite some time ago that you can't put cash in your deposit box. Check with your individual bank as to what you can store in the boxes. It wouldn't surprise me that they would not give those items back to you because as far as they're concerned; you're hiding money.

A Lot Of Bank Failures