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Just another bank failure...
Old 01-30-2010, 12:29 PM   #1
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Just another bank failure...

Our bank joined the growing list of failures: Business & Technology | American Marine becomes third state bank to close this year | Seattle Times Newspaper. This was not unexpected as they had been given several warnings over the last year and an ultimatum for the end of January. We are under the FDIC limits and only have a checking account there so I don't anticipate any issues.

DD
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Old 01-30-2010, 12:33 PM   #2
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The beat goes on....

Although I have some issues with how it's funded, I think deposit insurance has been one of the smarter things government has done over the decades. I could easily see bank failures causing panics and "runs" on the banks that lead to economic collapse had the FDIC not been there as a backstop. As it is, if you're under the deposit insurance limits, you can sleep relatively easily even if your money is at a fairly shaky institution.
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Old 01-31-2010, 01:40 AM   #3
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The beat goes on....

Although I have some issues with how it's funded, I think deposit insurance has been one of the smarter things government has done over the decades.
Some credit unions are asking their account holders to let them use private deposit insurance because the dues are too high. We all know how that'll go down....
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Old 01-31-2010, 09:30 AM   #4
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My bank (Amtrust) failed in December. Outside of being a big news item, we didn't feel a thing. The website always worked, we always had full access to all the accounts.

They've changed the name on the door to my branch and all the employees say that the takeover by an out of state bank was the best thing to happen since they all get to keep their jobs.

It's funny, we've been with this bank for over 20 years. They used to be Ohio Savings Bank and since almost all of our transactions are electronic now, our checks are so old that we're still using checks that say Ohio Savings, I never needed new ones that say Amtrust.

Now they might be going back to the name Ohio Savings. My checks will be up to date again. (The bank name never really mattered as the Routing Number has always been the same.)
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Old 01-31-2010, 10:21 AM   #5
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A little off topic, hope you guys don't mind.

Which of the big banks will survive? Which would most likely succeed? Bank Of America (BAC), Citigroup (C): Which one is healthier?

Sam
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Old 01-31-2010, 10:30 AM   #6
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A little off topic, hope you guys don't mind.

Which of the big banks will survive? Which would most likely succeed? Bank Of America (BAC), Citigroup (C): Which one is healthier?

Sam
I think Chase may be the healthiest of the bunch. I also think they will all survive -- you'll remember they are too big to fail. Too big to fail also means too big to be taken over by a competitor.

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Old 01-31-2010, 12:04 PM   #7
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I happened to swing by one of the branches yesterday. The parking lot was full and a lot of activity, way more then the usual Saturday crowd. The acquiring bank had info up on their website friday evening basically welcoming everyone and stating the transition will be transparent. This is the second regional bank they have taken over. Constructive destruction in action.

I agree with ziggy29 about the FDIC. Just imagine 2008 without FDIC backing for the banks. It would have been really, really ugly.

DD
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