The following happened in a relatively short period and it was a little surprising to me, although not unexpected.
I live in soCal and am in a RE related field. A residential developer that I knew was in "distress" filed for BK last week. A local, mid-sized "community" bank held some of the paper and was impacted and also was near to filing (or had already fiked) their poor first quarter #'s. They stop trading the banks stock for a somewhat extended period last week & then announce more losses & the need for a bridge loan from another bank. Stock is tanking, closed at less than $2/sh on Friday.
I mention this to my DW whose family has a fair amount of CD's at the comm bank. I suggest she (who is pretty much the family matriarch), ask if the other family members understand the way the FDIC ins works for bank deposits.
Anyway, family checks and they have some incremental deposits above the FDIC limits. The local branch of the comm bank is right across the street from a main BofA branch. DW goes with fam members to help with the transfer and on the way to BofA branch, sees the local comm bank branch with a very full parking lot which is unusual. As she goes into the BofA she notices it is real busy (which is not that unusual). Turns out alot of folks were going from the comm bank branch right to the BofA with their transfers.
This was a bit of an eye opener to me. I hope it does not indicate what the future will bring.
I live in soCal and am in a RE related field. A residential developer that I knew was in "distress" filed for BK last week. A local, mid-sized "community" bank held some of the paper and was impacted and also was near to filing (or had already fiked) their poor first quarter #'s. They stop trading the banks stock for a somewhat extended period last week & then announce more losses & the need for a bridge loan from another bank. Stock is tanking, closed at less than $2/sh on Friday.
I mention this to my DW whose family has a fair amount of CD's at the comm bank. I suggest she (who is pretty much the family matriarch), ask if the other family members understand the way the FDIC ins works for bank deposits.
Anyway, family checks and they have some incremental deposits above the FDIC limits. The local branch of the comm bank is right across the street from a main BofA branch. DW goes with fam members to help with the transfer and on the way to BofA branch, sees the local comm bank branch with a very full parking lot which is unusual. As she goes into the BofA she notices it is real busy (which is not that unusual). Turns out alot of folks were going from the comm bank branch right to the BofA with their transfers.
This was a bit of an eye opener to me. I hope it does not indicate what the future will bring.
