Countrywide

[Worried in FL]

Should I be worried that I have a large CD with them? The news on them is scaring me.

Worried in FL

[Rich_in_Tampa]

Quote:

Originally Posted by Worried in FL Should I be worried that I have a large CD with them? The news on them is scaring me.

Is your CD insured by FDIC? Or is it really large?

Countrywide just bought out another large subprime lender in our area.

[Martha]

If the CD was issued by Countrywide Bank, it is FDIC insured to the regulatory maximum. (If you have over 100,000 in cds at Countrywide, you may not be fully insured).

[Worried in FL]

Thanks Rich and Martha! It is under 100,000. so I guess I shouldn't worry.

[Rich_in_Tampa]

By the way, you can open separate accounts - each insured to $100K - if you do it as yourself, spouse, then yourself and spouse jointly. This covers you to $300k total in the same institution. Beyond that, just go to another bank and do the same.

[Bigritchie]

Quote:

Originally Posted by Worried in FL Thanks Rich and Martha! It is under 100,000. so I guess I shouldn't worry.

Well not to worry you, but do not forget that the fine print on the FDIC coverage, gives them 99 years to pay you back.

[Worried in FL]

OH NO! Now I am really worried!

Worried in Florida!

Quote:

Originally Posted by Bigritchie Well not to worry you, but do not forget that the fine print on the FDIC coverage, gives them 99 years to pay you back.

[Martha]

http://sba.luc.edu/research/wpapers/021211.pdf


The U.S. appears to be one of the very few countries that generally does not freeze accounts
at failed banks when they are resolved and, except in unusual instances, provides all depositors
almost immediate and full access to the value of their claims at resolution, based on losses from poor
closure rules and regulatory forbearance, so that there is no loss of either liquidity or present value
from post-resolution sources (FDIC, 1998a). The FDIC advances the funds. Although it may not
receives full and immediate payment for all the assets in the resolution of a failed bank, the FDIC
typically advances the pro-rata present value of the estimated recovery value through an advance
dividend payment to all depositors. . .

[FIRE'd@51]

As I understand it, the FDIC insures principal and interest up to 100K, so you would actually need to invest less than 100K to recover the interest as well.

[FinanceDude]

Quote:

Originally Posted by FIRE'd@51 As I understand it, the FDIC insures principal and interest up to 100K, so you would actually need to invest less than 100K to recover the interest as well.

That is true...........

[Worried in FL]

I appreciate everyone's advice. Thank you. I am going to wait and see what happens. I feel better about it now.

[Helena]

Yes, if it were me, I would be worried.
Same goes for accounts at WaMu which
is as exposed as CFC.