General Discussion

ms.smiler

(551 posts)

6. muriel_volestrangler, I understand that my deposits in the U.S. are insured by the FDIC

Reply to muriel_volestrangler (Reply #5)

Sat Mar 22, 2014, 08:14 PM

Mar 2014

up to $250,000. I am though uncertain of a few things. I wonder if the FDIC is truly prepared to handle the failure of any large banking institution. I also wonder how long must I wait until I receive the funds from the insurance?

As I understand, the FDIC insures the deposits but there is no particular time period when the insurance must be paid. So I think it possible, even likely that upon the failure of a large banking institution, depositors could wait 6 months, 9 months, a year or more waiting to regain their money which is unsettling.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

16 replies

= new reply since forum marked as read

Highlight:

EU Agrees Banking Union - Bail-Ins Cometh [View all] dixiegrrrrl Mar 2014 OP

So - banks will be like Lloyd's of London? djean111 Mar 2014 #1

To answer, in order asked: dixiegrrrrl Mar 2014 #2

Thanks. djean111 Mar 2014 #3

Dunno the details. dixiegrrrrl Mar 2014 #10

Incorrect - they eventually decided to take nothing from below €100,000 muriel_volestrangler Mar 2014 #13

Since bankers are clearly arm-in-arm with government, they all short make gov't salaries. reformist2 Mar 2014 #4

This is the Icelandic model, that had been very popular on DU muriel_volestrangler Mar 2014 #5

muriel_volestrangler, I understand that my deposits in the U.S. are insured by the FDIC ms.smiler Mar 2014 #6

I don't know how the US would handle a big failure muriel_volestrangler Mar 2014 #7

See my answer #8,below. n/t dixiegrrrrl Mar 2014 #9

In the case of Cyprus, it was decided that there was no insurance coverage dixiegrrrrl Mar 2014 #8

No, in Cyprus, the eventual outcome was that deposits up to €100,000 were transferred to a good bank muriel_volestrangler Mar 2014 #11

ahhh...yes...thanks for the memory jog. dixiegrrrrl Mar 2014 #14

So now I’m remembering when the credit markets “froze.” ms.smiler Mar 2014 #12

The whole purpose of the bail ins was to prevent declaration of bank failure. dixiegrrrrl Mar 2014 #15

In my family, “faith in banks” was destroyed in the Great Depression. ms.smiler Mar 2014 #16