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| FDIC seeking temporary unlimited Treasury loans |
| 2008-10-02 |
| The Federal Deposit Insurance Corporation is seeking temporary unlimited borrowing authority from the Treasury Department, according to a copy of the final Senate bailout legislation on Wednesday. |
| Posted by:Fred |
| #5 A lot of people don't have their checking and savings accounts in 'bank' accounts at all, but in brokerage house 'cash management accounts.' These usually act like cash but are actually mutual funds of very short term paper. As such I don't think they are covered by FDIC. The accounts are usually insured by the brokerage but against default only; if there is a 'run' on the accounts they may have to liquidate that short paper at a loss, leaving the accounts underfunded for the remaining depositors - and I am not sure that kind of loss is insured (until the brokerage house goes bankrupt, sort of like wrecking a rental car, make sure you total it or you are screwed.) |
| Posted by: Glenmore 2008-10-02 19:58 |
| #4 $200,000 doesn't cover for a small business with a payroll, however. Some of the smaller community banks are about to go under, which would hit Main St. very hard. |
| Posted by: Danielle 2008-10-02 14:02 |
| #3 IRA accounts are ALREADY FDIC insured at the higher level. The only practical benefit is to give non-IRA money fleeing the market a safe parking besides T-bills, notes and bonds. The amazing thing to me is that even with all the bailout loans and plans, and with the FED pumping the money supply, the dollar is at a 12+ month HIGH! |
| Posted by: Minister of funny walks 2008-10-02 11:28 |
| #2 This business of increasing FDIC insurance from $100k to $200k per account is nothing more than a meaningless placebo. Unless the depositor has been hooked to a life-support system for the past 25 years, I suspect individual accounts in excess of the currently insured amount are quite rare indeed. |
| Posted by: Besoeker 2008-10-02 08:29 |
| #1 so now that they finished raiding the stock market, the pension plans, the insurance companies, the banks and the credit institutions they intend to run the Treasury dry too. |
| Posted by: Betty 2008-10-02 00:29 |