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Old 02-20-2009, 11:16 PM
 
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Remember how ape**** the markets went when Bear Sterns, ML, IndyMac, Wachovia, and WaMu failed? WaMu was fairly small in size and it was the largest bank failure in history. If BoA failed, that would be the equivalent of the nuclear bomb on Hiroshima for bank failures. They have almost 3 trillion in assets that would need to be purchased, and it is the largest bank in the world. It would take A LOT of money to buy them up and after all the former consolidations, many banks aren't willing to put up money. Also, everyone says w/ relief "FDIC" however, I don't think the FDIC fund would be big enough for this one. An entity that big really can't fail (oh god, I sound like a politician) or it'll take more than just itself down. So many deposits would be lost, including retirement nest eggs and the savings of the unemployed (if they had any). So again, the common man would get screwed even if they had been financially responsible and saved.

I'm not usually a doom and gloomer, but it would be a huge calamity.
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Old 02-20-2009, 11:37 PM
 
Location: N/A
903 posts, read 571,143 times
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BofA's assets have been shattered just like everyother asset, the difference is theirs has been leveraged 9x8x7x6x5x4x3x2x1 times....
And all based on Debt rather than intrinsic value.

All on assets that have vanished into thin air a minimum of 30%

Invest in food, fuel and firearms
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Old 02-20-2009, 11:42 PM
Status: "happy again, no longer catless! t...." (set 3 days ago)
 
Location: Cushing OK
14,418 posts, read 16,677,475 times
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Is a smaller community owned bank better for a small income or a state wide bank? The one in california I've been using has never been mentioned but wondering if I should change to a local bank.
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Old 02-20-2009, 11:46 PM
 
Location: N/A
903 posts, read 571,143 times
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Quote:
Originally Posted by nightbird47 View Post
Is a smaller community owned bank better for a small income or a state wide bank? The one in california I've been using has never been mentioned but wondering if I should change to a local bank.
Flip a coin, there are no guarantee's in this environment.
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Old 02-20-2009, 11:53 PM
 
Location: NC
1,673 posts, read 1,480,538 times
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Just remember that small regional banks have a much higher chance of failing then these big banks do, and they are predicting up to 1000 bank failures or so this year (almost all small).

Even if a bank was nationalized, you wouldn't lose any deposit money to the new FDIC limit, and even then probably be fine. There is a difference between what nationalization is and the FDIC taking over a "failed" bank. Close, but different. A failed bank will be sold completely off and disappear. A nationalized bank would have parts sold off, restructured, and resold to private investors at a later date. Still, nationalizing is a horrible idea, but your money will be safe.
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Old 02-21-2009, 12:03 AM
 
25,800 posts, read 49,685,561 times
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Quote:
Originally Posted by car54 View Post
I've thought about taking all my cash out of banks....but not because of the possibility that the bank will fail. I just think that with the lousy interest rates nowadays and the taxes that reduce the yield even more, why bother?

But what about the logistics? Say you have a million dollars in multiple banks to turn into cash....are there limits to how much currency you can withdraw at a time?
I've mentioned to the bank I would be closing my small CD at maturity... hardly seems worth it for the not even 2% they were offering... the manager said it would be a mistake and said banks can limit withdrawals for a period of something like 7 days
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Old 02-21-2009, 12:12 AM
 
3,460 posts, read 4,789,502 times
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Quote:
Originally Posted by Ultrarunner View Post
I've mentioned to the bank I would be closing my small CD at maturity... hardly seems worth it for the not even 2% they were offering... the manager said it would be a mistake and said banks can limit withdrawals for a period of something like 7 days
That's scary...

ANY bank that threatens to hold your money isn't a good place to keep it.
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Old 02-21-2009, 12:14 AM
 
Location: NC
1,673 posts, read 1,480,538 times
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Quote:
Originally Posted by Ultrarunner View Post
I've mentioned to the bank I would be closing my small CD at maturity... hardly seems worth it for the not even 2% they were offering... the manager said it would be a mistake and said banks can limit withdrawals for a period of something like 7 days
Better then a Hedge Fund with Gating clauses, where they can hold all your money basically forever if the contract is worded right.
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Old 02-21-2009, 03:36 AM
 
Location: Apple Valley Calif
7,475 posts, read 19,561,668 times
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I have used BOA for years, and have no intention of withdrawing any money.
I will say, most of my assets are in ING DIRECT - Save Your Money! and https://www.emigrantdirect.com/Emigr...tWeb/index.jsp.
Both are innernet banks and you can transfer money in and out of your BOA account sitting in front of your computer.
ING is one of the oldest banks in the world, located in Holland, and are not strapped by bad loans.
All three are perfectly safe, so I keep the money spread around, but easily acessible.
I think you will find the CU's are not protected like banks are, so doen't feel to secure putting all youy money in a CU.
As far as BOA paying crap interest, that is today, it won't get any better changing banks.
ING and Emigrent do pay better interest. I keep my CD's there....
Don't worry about your bank, if it ever gets bad enough for them to take your money, then the coountry has collapsed and money will be worthless. Then it will be time to learn to speak Arabic
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Old 02-21-2009, 07:17 AM
 
591 posts, read 1,646,480 times
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I use 3 different banks with a good sum of money in each one, although each under the 250k . It just feels better to have it spread around --- not sure why, just does. I guess it is like not keeping all your eggs in one basket (or bank)!!

Last edited by kwalk65; 02-21-2009 at 07:18 AM.. Reason: spelling
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