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What happens if your bank fails?
Posted on 3/12/23 at 6:22 am
Posted on 3/12/23 at 6:22 am
I’m an idiot when it comes to these things. So if my bank ‘fails’ do all my funds eventually get transferred somewhere else? Lose it all? Get cashed out by the feds?
6
Posted on 3/12/23 at 6:43 am to BabyTac
I was thinking the same thing, I have 80K sitting in a checking account at Origin right now. 6% up to 40k is why and I'm about to use it as a down payment on something within the year.
I'd sure hate to lose it.
I'd sure hate to lose it.
Posted on 3/12/23 at 6:50 am to The Torch
Youre FDIC insured up to $250k. But you could be without money for a while if your bank gets shut down by the FDIC. I’m re-evaluating my banking right now as well
Posted on 3/12/23 at 6:50 am to BabyTac
$250,000 or under? Nothing. You can access your money in a few days
Anything over $250,000 is a grey area but should mostly be paid back.
The systematic issue is companies need to make payroll and for many companies $250,000 doesn't cover a few hours worth of payroll.
Anything over $250,000 is a grey area but should mostly be paid back.
The systematic issue is companies need to make payroll and for many companies $250,000 doesn't cover a few hours worth of payroll.
Posted on 3/12/23 at 8:25 am to The Torch
Same here. I have $90k sitting in my bank account. Would move it but planning some remodeling within the next few months. Just don’t want to lose it overnight with all these announcements coming out. Sounds like I’m safe overall.
Posted on 3/12/23 at 8:41 am to BabyTac
I wouldn’t call anything “safe” with This government around. How could you say otherwise ?
Posted on 3/12/23 at 8:41 am to Upperdecker
quote:
I’m re-evaluating my banking right now as well
So, where is safe to bank? I currently have accounts at 2 local credit unions, and a regional bank.
Posted on 3/12/23 at 8:43 am to kywildcatfanone
quote:
So, where is safe to bank? I currently have accounts at 2 local credit unions, and a regional bank.
Each bank/credit union is "safe" up to $250,000 as already mentioned.
If you have more than $250,000 at any bank, you should consider rebalancing.
Posted on 3/12/23 at 8:47 am to I Love Bama
It’s $250k per account. If you’re over that amount, you can open multiple accounts. If you’re over that amount, it’s probably better to park that in treasuries at the moment and earn something, although everyone is going to start doing that and make a liquidity run on banks ?? 
Posted on 3/12/23 at 8:52 am to catfish 62
If you are locked into a current CD over $250k, is that covered?
Posted on 3/12/23 at 8:56 am to catfish 62
quote:
It’s $250k per account. If you’re over that amount, you can open multiple accounts.
It's not that cut and dry.
The FDIC says its standard is to cover up to “$250,000 per depositor, per insured bank, for each account ownership category."
"For example, say you maintain single ownership of a checking account and a savings account at the same bank. You have $25,000 in checking and $275,000 in savings. According to the FDIC insurance per account rules, $50,000 of your money would not be covered."
This post was edited on 3/12/23 at 8:58 am
Posted on 3/12/23 at 9:13 am to BabyTac
Is our money safe??
Years of easy money about to come home to roost.
Btw, who said recessions were not necessary?
A big ponzi with plenty illegal activity.
US banking system- 22T
FDIC-125B
Years of easy money about to come home to roost.
Btw, who said recessions were not necessary?
A big ponzi with plenty illegal activity.
US banking system- 22T
FDIC-125B
Posted on 3/12/23 at 9:16 am to lsufan112001
quote:
I wouldn’t call anything “safe” with This government around. How could you say otherwise ?
Lol. Jesus.
Posted on 3/12/23 at 9:18 am to PhiTiger1764
Gotta assume gold is up and there will be a run on gold this week?
Realistically if a big bank fails there’s something else going on that could cause as much or more of a bigger issue, like the mortgage crisis.
Realistically if a big bank fails there’s something else going on that could cause as much or more of a bigger issue, like the mortgage crisis.
Posted on 3/12/23 at 9:33 am to Htown Tiger
quote:
If you are locked into a current CD over $250k, is that covered?
Only the 250k is covered
Posted on 3/12/23 at 9:37 am to catfish 62
quote:
it’s probably better to park that in treasuries at the moment and earn something, although everyone is going to start doing that and make a liquidity run on banks ??
This past week I have had more non financial people ask about us treasuries than in the previous 30 years of work. 8x probably.
A run is coming because banks can’t keep up with STT.
This post was edited on 3/12/23 at 9:37 am
Posted on 3/12/23 at 10:45 am to kywildcatfanone
quote:
So, where is safe to bank? I currently have accounts at 2 local credit unions, and a regional bank.
Idk need to research their “investments” and which carry the least risk
Posted on 3/12/23 at 10:56 am to Upperdecker
This is also what’s happens when there is literally a run on the bank. Social media and the news also helped destroy SVB as well as everyone heard about the issues and got scared (given SVB TOTALLY did it to themselves)
$42 billion going out of any bank in one day is absolutely insane and would crush almost any bank out there. I’ve been in the industry 30 years and people outside the industry don’t understand the magnitude of that.
When Huntington bank failed in 2008, their largest run was $16 billion in one day. Just for comparison purposes.
$42 billion going out of any bank in one day is absolutely insane and would crush almost any bank out there. I’ve been in the industry 30 years and people outside the industry don’t understand the magnitude of that.
When Huntington bank failed in 2008, their largest run was $16 billion in one day. Just for comparison purposes.
Posted on 3/12/23 at 11:01 am to BabyTac
If you are at an FDIC insured bank anything under 250k is protected.
SVB and Silvergate banks that have failed are special circumstances that led to this failures. Mostly due to them not diversifying their risk. Most of both of these banks are tied to risky startups and questionable crypto businesses.
SVB and Silvergate banks that have failed are special circumstances that led to this failures. Mostly due to them not diversifying their risk. Most of both of these banks are tied to risky startups and questionable crypto businesses.
Posted on 3/12/23 at 11:25 am to BabyTac
quote:
So if my bank ‘fails’ do all my funds eventually get transferred somewhere else? Lose it all? Get cashed out by the feds?
The Fed will cover you up to $250k. Not sure of the exact vehicle, but I believe they will take over the bank long enough for consumers to move their money to other institutions (or withdraw it completely).
We're more likely to see bank problems due to fear (ginned up by the media over the SVB failure) driving consumers to withdraw too much cash in too short a period of time rather than it being an actual problem with these banks.
Patience, grasshoppah.
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