Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 1 (1 Shares)  
Printer Friendly Page Save As Favorite View Favorites (# of views)   No comments

Exclusive to OpEdNews:
OpEdNews Op Eds

Bank Failures are starting in 2009 – FDIC will be busy this year

By       Message Joseph Russo     Permalink
      (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) ; , Add Tags  (less...) Add to My Group(s)

View Ratings | Rate It Headlined to None 1/19/09

Author 17868
- Advertisement -
2009 has arrived and within the first two weeks two banks have failed. (First two bank failures of 2009) The cost so far this year for these two banks is 200 Million dollars including administrative costs to switch over the banks.  

The insurance fund is absorbing approximately $145 Million of the two failed banks, and uninsured deposits will total approximately $40 Million dollars.


With all the turmoil in the economy, it is inevitable that banks will fail this year or at least be "absorbed" by other banks. Experts predict that almost 200 banks are in jeopardy for 2009.


What I don't understand is why depositors are not protecting their money.


Almost, $40 Million dollars was uninsured between these two banks and will be lost, which means that depositors are still not listening to the rules put forth by the FDIC. The FDIC makes it perfectly clear what the rules are.


Unfortunately, some people had accounts in one bank in excess of $250,000 (the recently increased insured amount). 


Let's review the rules again. If you are lucky enough to actually have more than $250,000 – Please do not keep it in one bank!  Open an account in another bank, and I don't mean another branch, I mean another bank with a different name.

- Advertisement -


The FDIC makes it very clear that if you have excess deposits, over the recently raised limit of $ 250,000; put the excess over $ 250,000 in a different bank (with a different name). Be aware that  SIPC rules, the agency that covers your stocks are different, but we'll cover that next time.


By now, it should be obvious that no bank is too big to fail, it is expected that smaller banks are subject to failure at a higher rate.  I'll try and keep count for you.


It is up to you to protect your assets today !


Joseph Russo is the Executive Director of The National Council of Financial Education for Students and Consumers and is a host of a "Financial Self Defense" cable TV series.

- Advertisement -


- Advertisement -

View Ratings | Rate It
Joseph Russo is an Author, Real Estate and Credit Expert, an Author/Journalist - Television & Radio Show Commentator and Professional Speaker as well as a Radio Show host and host of a NC cable TV show series, "Financial Self Defense" Joseph (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Dr. Doom(Dr. Nouriel Roubini)–The Prophet of Economic Disaster was right!

Economic Recovery and Housing Recovery in 2012

Bank Failures are starting in 2009 – FDIC will be busy this year

It's Friday 9/5/08 – Time for another Bank Failure (or two). FNMA, FHLMC "Can I please BUY A VOWEL?"

URGENT ATM Fraud Alert for Interstate Travelers to the Inauguration

If a Bank can't pay the Mortgage on its own Property - Can it Foreclose on Itself?