Should You Be Worried About Bank Failures?

troubling depositing checks from IndyMac bank failure

I got a call from an offshore "Savings & Loan Association" selling term investments backed by foreign currency trading. The guy made a statement that I found improbable but worth thinking about. He claimed that insured depositors in IndyMac got checks for their deposits in the bank, but had a great deal of trouble actually cashing them. He said many took the checks to another bank to deposit them and open a new account in the other bank, but the new bank refused to accept the IndyMac checks. I have been unable to find any confirmation of this claim. Are there any IndyMac insured depositors out there who had trouble getting another bank to accept for deposit your IndyMac check? What was your experience? Thanks.

RC Fraser of WA @ Oct 03, 2008 14:06:24 PM

Good that you let people know that they are FDIC insured and for what amount and that they should open accounts with other banks if having amounts exeeding FDIC insurance on deposit.

History tends to repeat itself, it seems, and if folks had not "run on the bank" as in the case of INDY MAC---the bank would not have failed. Just as in the great depression. Panic always kills. Most banks that could possibly fail will likely just be bought out by a larger, more secure bank, and the consumers accounts will just transfer over with no action required on their part. People should be informed but not panic about any of what is happening re: banks today. Stop by your institution to inquire about how much you are covered for. It can vary according to the vesting and how many are on each acct.

Liz Guy of CA @ Sep 15, 2008 10:33:06 AM

Bank Failures

I just did a quick check on the internet and just in Illinois alone, 3 banks failed/closed in 1953. Multiply that by 50 states and it's likely that there were more than 10 failures nationwide in 1953. Like an average business, banks can fail at anytime. I don't think believe we're heading toward another Depression, or economic collapse!

Let's do some more research before we put out an article that may scare people... unless that's what you want to do.

Kevin of IL @ Aug 29, 2008 20:00:43 PM

Mexicans

Your comments do not apply to this article and demonstrate your lack of understanding. Suggest you research before you publically display your ignorance.

caesarfmchavez of CA @ Aug 08, 2008 20:15:26 PM

Indymac bank/financial freedom reverse mortgage

My reverse mortgage is through Financial Freedom which is owned by Indymac - do I need to worry about what will happen to this reverse mortgage?

Sharon Johnson of WI @ Jul 28, 2008 02:05:26 AM

FDIC insurance limits

The last comment aside, it's critical that people know that their accounts (deposits and interest) CAN total more than $100,000. It depends on whether or not there are qualified beneficiaries attached to the account(s) and/or whether the accounts are single-depositor or joint.

The FDIC has a guide for calculating this on their site, available as a PDF download at http://www.fdic.gov/deposit/deposits/di_trust_accounts/index.html

as well as a calculator to figure out specifically whether the accounts would be insured:

http://www4.fdic.gov/EDIE/

Louise of CT @ Jul 16, 2008 20:06:23 PM

Mexicans

I think most of the problem with the typical thoughts about Mexicans can be traced to the panic about our own economy right now. While of course no can dispute that Mexican people do jobs that Americans don't want to do, the big picture must be addressed. No country on earth can afford to provide heathcare, food, housing, and education to the massive number of illegal Mexicans that the United States has allowed to enter our country.It is and should be punishable by law to enter another country without proper documentation. This goes for all of the countries on the face of the planet. There are perfectly good reasons for these laws and they should be upheld. That being said let's get back to the topic at hand. If one enters a country illegaly, they are already to be considered outlaws. Then, take into consideration that they do not follow or abide by any other laws that you and I must abide by, for instance driving without a drivers license,using emergency rooms for basic medical care, being illiterate in their own language,driving without proper insurance. I could go on and on. Therefore it stands to reason that if you don't have to pay for any of the other things that this country's citizens are required to pay for by mandate of law, working for minimum wage or doing dirty jobs is probably equal to making twenty dollars an hour. Every country belongs to it's citizens. That is the operative word. Citizen.

Robin H of IL @ Jul 16, 2008 17:41:20 PM

Should You Be Worried About Bank Failures?

Luke Mullins and Kimberly Palmer - you wrote this article and you left out a critical, important piece of information. One of your readers - Luke Jaxon - provided that information. And, he is absolutely correct. You state: "That means that if a bank goes under, Uncle Sam will give you your money back." IF Uncle Sam still has money.

How could both of you write this article and not state the limitations that FDIC has? Luke and Kimberly - BAD REPORTING and not doing sufficient research!

Luke Jaxon from Oregon, thanks for providing this information? Apply for a job with US News and World Report. There might be a couple of openings.

John in Montana of MT @ Jul 16, 2008 00:12:50 AM