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How long does the fdic have?.....
Old 08-15-2008, 10:36 AM   #1
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How long does the fdic have?.....

I owned an IndyMac Bank CD and it took FDIC a couple weeks to repay the money, with interest stopping on the day they failed. Someone told me FDIC has 10 years to repay the money, and someone else told me 20 years. The website just says "as soon as possible".
Anyone know conclusively what the rules are regarding FDIC?

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Old 08-15-2008, 12:35 PM   #2
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I guess "it depends". FDIC:When a Bank Fails - Facts for Depositors, Creditors, and Borrowers

I do not think even the government would construe "as soon as possible" to mean 10 years.

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Old 08-16-2008, 08:20 AM   #3
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I believe FDIC legally can take up to 100 years to repay you but if that ever happens, it would cause a lot of chaos.
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Old 08-16-2008, 11:02 AM   #4
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If there's a big run on FDIC, and they run out of money, they have access to borrow $70 billion more from the Treasury, and then go to Congress after that.

However, if that case comes to be, the interest rates on CDs will plummet because the FDIC insurance premiums will skyrocket, and the banks won't be giving juicy yields out.............
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

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Old 08-18-2008, 08:29 AM   #5
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If it's any help we had a couple clients lose CDs in ANB which was the other larger bank that failed this year. It depends on the brokerage house that is holding the CD if it is a brokered CD.

With Schwab doing the filings it only took 2-2.5 weeks to get the cash back.
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