Watch a bank get seized by the FDIC
filed in Odds and Ends, Savings on Mar.17, 2009
Did you ever wonder what the process was when a bank fails? What happens to all the money and bank accounts after the fact? These were questions that I was always interested in and thanks to 60 Minutes (TV News Show), there was a 13min segment on the entire process.
I found this video and thought I would share it with you all. Everyone I know has a bank account and it holds what we value, our money, and if for some reason our bank failed, where would we turn to? It was really interesting to note that the FDIC is not funded by tax payer money, but by insurance that all banks pay into. Last year, 20+ banks failed, and for 2009, we are quickly approaching this number.
Watch this very interesting video!
Hope this clears up some misconceptions about bank seizures and at the same time, shows how seamless the process is for the customers.
Happy Investing!
Aman, MBA
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March 18th, 2009 on 1:52 pm
Insane video! I had no clue the process was the way its setup. This really shows the FDIC at work and took away a lot of myths I had about them. I always thought they covered our assets with taxpayer $ but I guess not. I’m still amazed at this clip. Thanks for the share.
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March 18th, 2009 on 4:31 pm
Speechless from watching this. Its unfortunate that banks fail but good to know the FDIC watches out for account holders and maintains uninterrupted function on the consumer level. It was weird to hear that when the failed back got bought out, the FDIC paid the bidder money and give insurance on the loans outstanding.
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March 18th, 2009 on 7:41 pm
Great video Aman!
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March 19th, 2009 on 3:39 pm
This is soo random but I would love to own a bank building..
I cross my fingers for my bank’s well-being..
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admin@BullsBattleBears Reply:
March 19th, 2009 at 10:05 pm
I hear ya. It seems like no bank is immune to the problems. I remember back in November getting a letter from of one of my banks telling me that it was facing some hardship…it did pull through but was a little stressing.
On your other point, there is a condo I was going to get into a few years back in Toronto that actually used to be one of the oldest bank buildings in Toronto. Some of the condo units were actually connected to the giant vaults within the units. It was really a cool concept, just way too expensive.
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March 19th, 2009 on 10:11 pm
@ CO, FPB, Sharon,
your welcome guys. it really is an eye opener to see how covert the whole operation is…everyone on the FDIC team had a plan of action that initiated it to completion to ensure all customers had seamless operations on their end.
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October 13th, 2009 on 11:37 am
For one thing, the fixing by the FDIC and a bailout if there is one, would help prevent a chain reaction that could drain the FDIC and assuring that more deposit insurance premiums keep coming in.
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