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What happens to your account when a bank fails?

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Fri, 04/10/2009 - 21:46
Jewel's picture
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There was another two announced in the Press this evening in North Carolina and Colorado. I don't mean to sound dumb. What happens to the customer? Is your money frozen or can you still access what you have?

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Wed, 04/29/2009 - 17:16
#1
Kay's picture
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Re: What happens to your account when a bank fails?

CBS ran a 60 minutes feature on that last month, Jewel. Your money should be covered by the FDIC. They do their best to make it a smooth transition for customers.

"We've been around for 75 years and nobody's ever lost a penny of insured deposits," FDIC head Sheila Bair told Pelley. "…which is why you need to make sure you are below the insured deposit limits."

Bair told Pelley the insured deposit limit is $250,000 right now.

 
MCullough is an FDIC employee.

Asked what types of questions people were asking him, McCollough told Pelley, "Can I still write checks? Can I access my safe deposit box? Can I use my ATM machine?"

The answer to all those questions, McCollough said, was yes.

 

A few days before the takeover of Heritage Community Bank, 60 Minutes was at the FDIC office in Dallas where they were holding a secret online auction in hopes of finding a buyer for Heritage

The winner was MB Financial, a $9 billion Chicago bank. The night of the takeover, all of Heritage Community's branches became MB banks.

"It's almost as if nothing had happened," Pelley remarked to MB CEO Mitchell Feiger.

"Almost nothing did happen," Feiger replied. "It's the same products, it's the same services, it's the same people, taking care of the same customers."

It's a long but good article.
 
http://www.cbsnews.com/stories/2009/03/06/60minutes/main4848047.shtml
 


The best way for a person to have happy thoughts is to count his blessings and not his cash. ~Author Unknown

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Wed, 05/06/2009 - 13:04
#2
Jewel's picture
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Re: What happens to your account when a bank fails?

Thanks very much, Kay! I feel a lot less worried than I did. The behind the scenes look was interesting actually. It must be a real strain on the staff to see them walk through the door and just take over like that.

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Thu, 05/07/2009 - 15:50
#3
frazzledmom's picture
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Re: What happens to your account when a bank fails?
"We've been around for 75 years and nobody's ever lost a penny of insured deposits," FDIC head Sheila Bair told Pelley. "…which is why you need to make sure you are below the insured deposit limits."
Bair told Pelley the insured deposit limit is $250,000 right now.

Phew, that's a relief! I just checked my bank account and I have $249,999.99 in it. I'll be okay then.  :P


 
Only when the last tree has died and the last river been poisoned and the last fish been caught will we realize we cannot eat money. - Cree Indian Proverb

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Thu, 05/07/2009 - 15:53
#4
Savannah's picture
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Re: What happens to your account when a bank fails?

frazzledmom wrote:

"We've been around for 75 years and nobody's ever lost a penny of insured deposits," FDIC head Sheila Bair told Pelley. "…which is why you need to make sure you are below the insured deposit limits."
Bair told Pelley the insured deposit limit is $250,000 right now.

Phew, that's a relief! I just checked my bank account and I have $249,999.99 in it. I'll be okay then.  :P


LOL, how fortunate frazzledmom. I'm in the same boat almost. I have $2.49 in mine. What's a couple of decimal points between friends? ;)

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Sun, 05/10/2009 - 23:29
#5
cookiefan's picture
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Re: What happens to your account when a bank fails?

Don't worry Savannah. I'm sure frazzledmom will look after you if they snatch your money. She can afford it LOL.


Without frugality none can be rich, and with it very few would be poor.
- Samuel Johnson

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