Corus Bank Short Term CDs on the move again

[MJ]

Not bad for parking the cash short term.

6 months 3.93%
12 months 4.21%

http://www.corusbank.com/

 

[wabmester]

How does a bank make money when they pay more on the short end than they can get on the long end? At those rates, I'd feel like I was making a bet on whether the FDIC will really pay off on their insurance claims. Do you already bank with these guys, MJ?

 

[Mr._johngalt]

How does a bank make money when they pay more on the short end than they can get on the long end?    At those rates, I'd feel like I was making a bet on whether the FDIC will really pay off on their insurance claims.   Do you already bank with these guys, MJ?

Banks are sometimes wrong (about lots of things), but if you think they
are offering attractive rates because they want to be nice, or they are just stupid, you are way off. I suspect the amount of thought and research
going into the establishment of these rates is significant. I will admit
that sometimes I wonder how banks can make it paying out what they do
on invested money, vs. what they are collecting in mortgages and car loans.
But hey, that's their problem. Mine is to take advantage of what is out there.
It's like a chess game. They make a move and then I make one.

JG

 

[brewer12345]

Corus is primarily a commercial construction loan lender. That means that most of their loans are floating rate or relatively short term (couple of years), and they get high rates on their loans. Since they seem to have a very fast growing business, they are raising deposit money by paying up. The seem to be able to afford to pay up because they earn a lot of interest on their loans. Will they blow up? Depends. Construction lending is inherently riskier than, say, conservatively underwritten commercial mortgages. However, if they are doing it right, they should be solvent in all but the most severe commercial real estate crash, since they are pretty well capitalized. If a really bad commercial RE crash happened, their stock would get trashed, though.

 

[MJ]

Do you already bank with these guys, MJ?

Yes. I have several CDs.

At those rates, I'd feel like I was making a bet on whether the FDIC will really pay off on their insurance claims.

If there was any concern that FDIC would default, I'm prepared. I have build around my property 30 feet electric fences with machine gun towers that are hidden underground and can be raised at a moments notice when the riots begin. I need them to protect my bunker which is filled with 5 years of food, water, books, and video tapes.

 

[REWahoo]

I need them to protect my bunker which is filled with 5 years of food, water, books, and video tapes.

Would any of those tapes describe how to buy real estate with no money down?

REW

 

[laurence]

Yes. I have several CDs.
If there was any concern that FDIC would default, I'm prepared. I have build around my propety 30 feet electric fences with machine gun towers that are hidden underground and can be raised at a moments notice when the riots begin. I need them to protect my bunker which is filled with 5 years of food, water, books, and video tapes.

Video tapes Party at your bunker! But I thought the tribulations were 7 years?

 

[MJ]

Video tapes Party at your bunker! But I thought the tribulations were 7 years?

I didn't want to make it sound like I was going to have such a great time but there will be a small number of female guests to help me eat the food, wine and watch those "National Geographic" videos. My guests may be my toughest challenge to survive this financial ordeal.

This answer could be transferred to the "what do we do all day" thread.

 

[Mr._johngalt]

I didn't want to make it sound like I was going to have such a great time but there will be a small number of female guests to help me eat the food, wine and watch those "National Geopgraphic" videos.  My guests may be my toughest challenge to survive this financial ordeal. 

This answer could be transfered to the "what do we do all day" thread.

I'm a bit muddled. I had forgotten all about the "tribulations". In fact, I thought
they were the lamentations. Anyway, some great music. I really miss
the doo-wop era.

JG