Are your Bank Deposits protected?

::::::::

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.

 

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.

Authors Website: www.ConsumerFinancialFacts.org

Authors Bio:
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 Russo is known as Dr. Doom Jr. because his analysis of "Main Steet" problems have been in accord with Nouriel Roubini also known as Dr. Doom who is a world renowned economist.

Joseph Russo served as President of The Brooklyn Board of Realtors for 3 Terms, and was instrumental in encouraging and organizing a regular agenda of Educational Courses and Professional Certification Courses. The Brooklyn Board of Realtors is one of the oldest and most prestigious Realtor Boards in the Country.

Joe Russo was Certified as a General Real Estate Appraiser in New York State. Assignments included Expert Testimony for Dept. of Justice, testimony before NY State and NY City Criminal, Civil, Probate, Custodial and Family Courts. Most notably was his work on behalf of clients before the NYC Board of Standards and Appeals for the purpose of Zoning Variances.

Related experience includes Insurance Brokerage, Financial Consultant with Morgan Stanley with a specialty in mortgage placement for clients of the branch.

Currently, he is an active, successful Realtor and Investor in North Carolina, specializing in selling waterfront communities and commercial investments in the Charlotte/Lake Norman area, North Carolina. He estimates that he has personally negotiated over 1,000 commercial and residential real estate transactions throughout his career, in addition to appraising over 1,000 commercial and residential properties.
www.AmericasBestAgent.com.

Joseph has recently been asked to be the Executive Director and National Spokesperson for the National Council of Financial Education for Students and Consumers in helping to develop and implement their programs http://www.studentfinancialeducation.org