Word: fdic
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...time to make sure you don't have more than $100,000 in any one bank. The FDIC insures that amount should your bank fail--plus $250,000 for retirement accounts that hold bank products like CDs. On Sept. 16, however, there was an event in the normally unexcitable world of money-market funds. Because of a loss on Lehman debt, a money fund marked its share value below $1--sacrilege for an investment meant to be akin to cash. A mass redemption followed. If more money funds "break the buck," you may be tempted to move to FDIC-insured...
There's probably no need for that. Let's not forget that the FDIC ensures bank deposits up to $100,000. (And up to $250,000 for IRAs and certain other retirement accounts held at FDIC-insured banks.) If you have more than $100,000 in deposits at a single bank, well, congratulations. But you probably want to spread it around. Sometimes people wind up over the FDIC limit simply because banks merge. Bank of America, to take a prime example, started its acquisition binge long before Countrywide and Merrill Lynch. Inertia prevents plenty of people from opening...
...estimates of the cost of the savings-and-loan crisis of the 1980s. The S&L experience is instructive: the cost estimates started low (Ely's first guess was $25 billion), then eventually grew to $500 billion. The actual price tag, as calculated by the Federal Deposit Insurance Corp. (FDIC) long after the fact: $123.8 billion, or about 2% of annual GDP during the bailout years. That's equivalent to $286 billion today...
...government loans behind Bear Stearns' shotgun marriage to JPMorgan Chase & Co. in March, although since they were made by the Federal Reserve--which can print its own money--it's not a direct cost to taxpayers. Then there are the $4.5 trillion in bank deposits insured by the FDIC. The first big bank bust of the current crisis, that of mortgage specialist IndyMac, cost an estimated $8.9 billion, leaving the FDIC with just $45 billion on hand to cover a likely rash of failures. But while the agency may hit up taxpayers for a loan, this would eventually be paid...
JULY 14 After FDIC chair Sheila Bair announces the FDIC may cover a portion of uninsured deposits, IndyMac reopens under FDIC control, and customers flood its 33 California locations to withdraw funds. With hundreds of clients lining up at dawn, branches are overrun...