Bank Failures

[BeachSiO2]

I have a question about how a bank failure would work for let's say someone with 50k in joint checking and savings. I know they would be federally insured since its under 100k but I have a few questions.

Would your account be automatically frozen where you couldn't take your money out? Would your money even be there? :shock:What would happen to outstanding checks? Would they bounce?How long would it take to actually GET your money if it is tied up?

I really have no idea how this would work, but it reminds me of the old adage about having money in your pocket in case of a hurricane. Is this the same type of situation because I rarely have more than $50 in my pocket, it is usually all on the debit card. Thanks in advance for responses.

 

[Capricious]

As long as you are within FDIC limits I would not worry about it.

Another bank would take over your accounts and at most you
would not have access to your money for a day or two.

The U.S governement does not want to have a Northern Rock-
style run on their hands so this would be handled fairly quickly.

Unlike anything else the goverment does.

 

[elgordoboy]

I have a question about how a bank failure would work for let's say someone with 50k in joint checking and savings. I know they would be federally insured since its under 100k but I have a few questions.

Would your account be automatically frozen where you couldn't take your money out? Would your money even be there? :shock:What would happen to outstanding checks? Would they bounce?How long would it take to actually GET your money if it is tied up?

I really have no idea how this would work, but it reminds me of the old adage about having money in your pocket in case of a hurricane. Is this the same type of situation because I rarely have more than $50 in my pocket, it is usually all on the debit card. Thanks in advance for responses.

http://www.fdic.gov/bank/individual/failed/miamivalley.html
Links to the fdic and another closed bank. Appears its a fairly seamless transition. The big problem comes from widespread bank runs, but at that point we are all in a bind.

 

[BeachSiO2]

As long as you are within FDIC limits I would not worry about it.

Another bank would take over your accounts and at most you
would not have access to your money for a day or two.

The U.S governement does not want to have a Northern Rock-
style run on their hands so this would be handled fairly quickly.

Unlike anything else the goverment does.

http://www.fdic.gov/bank/individual/failed/miamivalley.html
Links to the fdic and another closed bank. Appears its a fairly seamless transition. The big problem comes from widespread bank runs, but at that point we are all in a bind.

Thanks. I went to the website and it does look seamless. You just never know if its like other insurance claims :roll:

 

[Capricious]

"...The big problem comes from widespread bank runs, but at that point we are all in a bind..."


Or with wide-spread bank failures.

Then it becomes a big bind for tax payers.



We are going to see a lot more of this and I think we
will see a Resolution Trust Corp-style clean-up of the
mess.

I think we will see auctions (REAL auctions) of property just
as there were during the S & L clean-up.

That will be the time to invest in real estate.

 

[jlweathers]

you never know - the dow 15,000 may save us all. & there are definite opportunities in RE for anyone who is liquid.

 

[SHELLY]

you never know - the dow 15,000 may save us all. & there are definite opportunities in RE for anyone who is liquid.

I'm liquid, but RE isn't tempting enough. Compared to the stock market, RE moves at a glacial pace--no need to rush.


.

 

[Yellow Hammer]

I see opportunity knocking for those that waited.

And are willing to wait a bit longer.

For now, it's just fun to watch.

As Mr. Buffet said, "when the tide goes out, you see who's
been swimming naked."

Fun to watch? I have heard this attitude from a few people....what the hell is fun about it? Hardworking people getting laid off? People losing their life savings in real estate? People relocating their families hoping for a better life only to end up in financial ruin.....Maybe you would enjoy dog fighting and midget tossing too. There seems to be an attitude from some that seems to enjoy seeing people fail, especially those who may have ridden the bubble to some success, only to have it explode under them....why some are like this is beyond me. Not that it would make any difference at all, but this message board has turned into a bashing board of negativity, gloom and doom, and while it is completely up to me whether to read it or not.....or believe it or not, what about the person that comes to SOWAL on vacation, thinks about investing in this market, finds this well advertised web site, reads one of these "S&L DECLARES BANKRUPTCY DUE TO FORCLOSURES IN SOUTH WALTON COUNTY DUE TO THE DEATH OF SEA TURTLES AND THE BEACH IS NOT AS PRETTY AS IT USED TO BE AND TRAFFIC SUCKS AND HURRICANES ARE COMING AND SHARKS HAVE EATEN 23 TOURISTS AND TAXES ARE RIDICULOUS AND YOU CANT GET INSURANCE...BLAH BLAH BLAH and get discouraged about an investment in our market, and buy a lake house in Eufaula....even if it is one person I think that it is a damn shame.

 

[SHELLY]

.or believe it or not, what about the person that comes to SOWAL on vacation, thinks about investing in this market, finds this well advertised web site, reads one of these "S&L DECLARES BANKRUPTCY DUE TO FORCLOSURES IN SOUTH WALTON COUNTY DUE TO THE DEATH OF SEA TURTLES AND THE BEACH IS NOT AS PRETTY AS IT USED TO BE AND TRAFFIC SUCKS AND HURRICANES ARE COMING AND SHARKS HAVE EATEN 23 TOURISTS AND TAXES ARE RIDICULOUS AND YOU CANT GET INSURANCE...BLAH BLAH BLAH and get discouraged about an investment in our market, and buy a lake house in Eufaula....even if it is one person I think that it is a damn shame.

I would suggest a link to rainbowsshootingoutofourbutts30A.com.

P.S. Real Estate investment isn't for girly-men (or girly-girls either).

.

 

[Mango]

I would suggest a link to rainbowsshootingoutofourbutts30A.com.
.

Are there potties of gold at the end of above said rainbows?