An FDIC question...please clarify (see details)?

An FDIC question...please clarify (see details). A friend (who I believe knows a good deal about the banking industry) told me that, regardless of FDIC limits, "no one has ever lost one penny" in an FDIC insured account. He went further to say that if some poor soul had in excess of $100k in an account, they still did not lose any money, even during the S&L crisis back in the '80s (I think).

Is this true? He went on to say that if you had money in excess of the limit in a bank that went under, you would effectively lose access to the money until they sorted everything out, but that it is highly unlikely, even if you are over the limit that you would never see the money again if it is in FDIC account. Is this true?

Is he correct? Asked by HankMoody 41 months ago Similar questions: FDIC question clarify details Business > Financial Services.

Similar questions: FDIC question clarify details.

Not true. If a person had more than $100,000 in a regular savings account at IndyMac, they only received the insured amount of $100,000. That's a play on words by the FDIC.

The IndyMac fiasco is why WaMu customers ran to credit unions and more stable banks (ie, Bank of America) after WaMu posted their multibillion dollar losses earlier this year. People lost money.

Well no, and no The FDIC insurance system works fine as long as nobody uses it. The amount in the FDIC fund is quite small, something like 2% of all deposits. Now in a normal year a few banks go bust due to mismanagement or fraud, and FDIC can pay off the depositors, no sweat.SO all the bankers get to put those nice FDIC stickers on their doors and they can assure the public they're protected.

They're not. The protection is a very very thin layer of cream cheese on the bagel. If just 10% of the banks went bust, or the public thought they were going to lose their money and just 10% of them tried to get their money out, there would be trouble.

Not enough money to go around. All your money is tied up in Jackelope ranches, Eskimo refridgerator dealerships, and deluxe Miami condos for crack-heads. Those are what are called "illiquid assets", which means nobody in their right mind would give you good cold hard cash for them.

You see a while back a senator named Phil Gramm with the help of a few others deregulated the banking biz so much that they can and have done whatever they want with your money. If they make a profit on their wild investements, they keep the profits. If they lose your money, they can expect the govt.

To bail them out. That's you, throwing more money at them, so maybe they can restore some of your money that they squandered..

1 I am in no way a financial expert, or even halfway knowledgable, about the ins and outs of banking. I can however, state as FACT, that during the S & L crisis in the 1980's, the few thousand dollars I had in State Savings Bank , based in Cincinnati, disappeared completely. I never got ONE CENT of my money back, even though the governemnt gave them a 124BILLION dollar bailout.So, no.

He is not correct, at least not in my case.

I am in no way a financial expert, or even halfway knowledgable, about the ins and outs of banking. I can however, state as FACT, that during the S & L crisis in the 1980's, the few thousand dollars I had in State Savings Bank , based in Cincinnati, disappeared completely. I never got ONE CENT of my money back, even though the governemnt gave them a 124BILLION dollar bailout.So, no.

He is not correct, at least not in my case.

2 Not that I know the ins and outs of banking either, but technically, I have now been further told that the S&L crisis was insured by the FSLIC, not the FDIC. The plot thickens.

Not that I know the ins and outs of banking either, but technically, I have now been further told that the S&L crisis was insured by the FSLIC, not the FDIC. The plot thickens.

3 Home State Savings Bank of CincinnatiIn March 1985, it came to public knowledge that the large Cincinnati, Ohio-based Home State Savings Bank was about to collapse. Ohio Gov. Dick Celeste declared a bank holiday in the state as Home State depositors lined up in a "run" on the bank's branches in order to withdraw their deposits.

Celeste ordered the closure of all the state's S&Ls. Only those that were able to qualify for membership in the Federal Deposit Insurance Corporation were allowed to reopen. 9 Claims by Ohio S&L depositors drained the state's deposit insurance funds.

A similar event also took place in Maryland.

Home State Savings Bank of CincinnatiIn March 1985, it came to public knowledge that the large Cincinnati, Ohio-based Home State Savings Bank was about to collapse. Ohio Gov. Dick Celeste declared a bank holiday in the state as Home State depositors lined up in a "run" on the bank's branches in order to withdraw their deposits.

Celeste ordered the closure of all the state's S&Ls. Only those that were able to qualify for membership in the Federal Deposit Insurance Corporation were allowed to reopen. 9 Claims by Ohio S&L depositors drained the state's deposit insurance funds.

A similar event also took place in Maryland.

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A question about NO and NOS. Please read details.

FDIC question: Two more banks failed Friday. Has any bank that was taken over by the FDIC failed a second time?

I guess I should clarify my question. Is there software available to the public that can date a scanned old photo?

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.