stock market was up today...

#13,551
#13,551
volfanhill said:
All FDIC member banks pay the FDIC a premium. That premium is based on the amount of deposits the bank holds. The FDIC uses those payments to pay out when a bank fails.
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That is ambiguous. When you say premium..just like our car insurance. Is the FDIC sitting on a mountain of cash that can cover every US despositor in the nation up to $250K each. That would be trillions.
 
#13,553
#13,553
Orangeburst said:
That is ambiguous. When you say premium..just like our car insurance. Is the FDIC sitting on a mountain of cash that can cover every US despositor in the nation up to $250K each. That would be trillions.
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No they do not sit on that much money. Like an insurance company, they don't sit on enough cash to cover if every insurer has a catastrophic situation. I don't know how much they hold. I do know they invest in us treasuries and have always met their obligation. Edit: Found some info

The Deposit Insurance Fund (DIF) balance increased by $1.0 billion to $125.5 billion.

That's from Q3 2022

FDIC Quarterly
 
#13,554
#13,554
Orangeburst said:
That is ambiguous. When you say premium..just like our car insurance. Is the FDIC sitting on a mountain of cash that can cover every US despositor in the nation up to $250K each. That would be trillions.
Click to expand...

No, that would be some apocalyptic shtt right there.

Just like some business that sells homeowner’s insurance couldn’t cover it if every house they covered was destroyed at the same time.
 
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#13,555
#13,555
NorthDallas40 said:
I’ll add up to a limit of $250k per depositor per bank. It had been covered before but just for completeness.

This is why if you somehow manage to have more than $250k on hand in cash or CDs you split that between banks.
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I think that you can have multiple accounts as long as there are different people on the accounts. A husband and wife could have $750k and have $250k accounts for each and a third joint account. I’m not 100% certain though.

I also think that there used to be a work around when one person had multiple ACCOUNTS with slightly different names. Jim Bob Smith. James Robert Smith. JB Smith. That trick no longer exists.
 
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#13,556
#13,556
volfanhill said:
No they do not sit on that much money. Like an insurance company, they don't sit on enough cash to cover if every insurer has a catastrophic situation. I don't know how much they hold. I do know they invest in us treasuries and have always met their obligation. Edit: Found some info

The Deposit Insurance Fund (DIF) balance increased by $1.0 billion to $125.5 billion.
Click to expand...

So the FDIC invests in US treasuries...Holy Snap
 
#13,557
#13,557
volfanhill said:
No they do not sit on that much money. Like an insurance company, they don't sit on enough cash to cover if every insurer has a catastrophic situation. I don't know how much they hold. I do know they invest in us treasuries and have always met their obligation. Edit: Found some info

The Deposit Insurance Fund (DIF) balance increased by $1.0 billion to $125.5 billion.

That's from Q3 2022

FDIC Quarterly
Click to expand...

That would barely cover a few banks, much less a mega bank
 
#13,559
#13,559
Thunder Good-Oil said:
I think that you can have multiple accounts as long as there are different people on the accounts. A husband and wife could have $750k and have $250k accounts for each and a third joint account. I’m not 100% certain though.

I also think that there used to be a work around when one person had multiple ACCOUNTS with slightly different names. Jim Bob Smith. James Robert Smith. JB Smith. That trick no longer exists.
Click to expand...

I think joint accounts get double, 500k.
 
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#13,560
#13,560
I have made numerous posts about this and nobody know ****.
Just it is government insured..that should scare the crap out of anybody with a gov that is $31T in debt and SS insolvency inbound.

They way it should of been set up is as a lock box holder of bank reserves.
 
#13,561
#13,561
Orangeburst said:
That would barely cover a few banks, much less a mega bank
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This from 2021 but it could cover if all the top ten went down to tomorrow and then some. By a ton.

Rank
Name
JPMorgan Chase Bank
2
Bank of America
3
Wells Fargo Bank
4
Citibank
5
U.S. Bank National Association
6
Truist Bank
7
PNC Bank
8
TD Bank
9
The Bank of New York Mellon
10
Capital One
Total Deposits
$2,253,482,000
$1,906,458,000
$1,479,499,000
$1,282,071,000
$442,835,836
$395,781,000
$380,920,825
$351,716,058
$341,999,000
$303,536,222
 
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#13,563
#13,563
Orangeburst said:
One bank..
If SHTF it is worthless.
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Read a post above. It's laughable to worry about the FDIC. These banks have trillions but that's not what's insured. State Farm would be screwed too if everyone they insure got hit by a car today. It ain't happening. And remember it's only 250K. And then consider how many of these accounts are business accounts.
 
#13,564
#13,564
Thunder Good-Oil said:
I think that you can have multiple accounts as long as there are different people on the accounts. A husband and wife could have $750k and have $250k accounts for each and a third joint account. I’m not 100% certain though.

I also think that there used to be a work around when one person had multiple ACCOUNTS with slightly different names. Jim Bob Smith. James Robert Smith. JB Smith. That trick no longer exists.
Click to expand...
Yeah you’re right there are insured limits differences based on individual vs joint accounts
 
#13,567
#13,567
volfanhill said:
It's about to cover the 16th largest bank in the country with zero problems
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Hopefully they got SVB into receivership in time to salvage much of the depository accounts without draining the insurance fund. Only 10% or 15% of deposits were FDIC insured and then the deposits shouldn’t have gone anywhere close to zero. I also hope that the uninsured depositors don’t get bailed out by the Feds. They knew the risk. Shareholders are screwed though. But they also knew that there was a risk when owning bank equity.
 
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#13,568
#13,568
Orangeburst said:
I have made numerous posts about this and nobody know ****.
Just it is government insured..that should scare the crap out of anybody with a gov that is $31T in debt and SS insolvency inbound.

They way it should of been set up is as a lock box holder of bank reserves.
Click to expand...
Pretty much everyone has explained it to you. It's a bank insurance company. You understand how insurance companies work right?
 
#13,569
#13,569
Thunder Good-Oil said:
Hopefully they got SVB into receivership in time to salvage much of the depository accounts without draining the insurance fund. Only 10% or 15% of deposits were FDIC insured and then the uninsured deposits shouldn’t have gone anywhere close to zero. I also hope that the uninsured depositors don’t get bailed out by the Feds. They knew the risk. Shareholders are screwed though. But they also knew that there was a risk when owning bank equity.
Click to expand...


Another gov scam. Hell they probably used some accounting to invest that money somewhere else like Treasuries. Probably paying it out just to keep the gov running today
 
#13,570
#13,570
Thunder Good-Oil said:
Hopefully they got SVB into receivership in time to salvage much of the depository accounts without draining the insurance fund. Only 10% or 15% of deposits were FDIC insured and then the uninsured deposits shouldn’t have gone anywhere close to zero. I also hope that the uninsured depositors don’t get bailed out by the Feds. They knew the risk. Shareholders are screwed though. But they also knew that there was a risk when owning bank equity.
Click to expand...
100% agree
 
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