Berkeley CSUA MOTD:2013:May:13 Monday <Tuesday>
Berkeley CSUA MOTD
2013/5/13-7/3 [Finance/Banking] UID:54676 Activity:nil
5/13    Does FDIC ever matter? How likely is it that your deposit of
        over $250k going to be screwed over in a major US bank?
        \_ Was Washington Mutual a major bank?
        \_ Was Washington Mutual a major US bank?
        \_ Hahahahahahahahahahaha. Good one.
        \- As with nuclear weapons, this insurance produces much of its value
           just by existing rather than being used. FDIC insurance is largely
           to prevent bank runs. Note also the FDIC supervises/assists with
           healthy banks taking over ailing banks. There is a really funny
           THIS AMERICAN LIFE on this.
           As for history, read about the 1980s Savings and Loan crisis.
           Small banks tank all the time. --psb
           \_ k thx. so if I have 2 accounts of ~= value at the same bank,
              I have double the FDIC coverage?
              \- if you have more than $250k in a single bank, you probably
                 should not be getting financial advice from me/motd, but
                 unless things have changed recently, the limit is per
                 person + per bank + per "account class" ... the last is
                 not totally intuitive. a personal saving/checking account
                 are the same account class, but your IRA is a different class.
                 so $200k CD + $200k savings = $250k cap. $200k IRA +
                 $100k checking = $300k coverage. i dont know all the nuances
                 about this ... like how spouses are treated (this may get
                 weird if you are a homosexual due to state law varying on
                 gay marriage) everything in the vague category of individual
                 demand account etc. --psb
                 \- hmm, apparently spouses are not treated specially ... the
                    special treatment applies to real persons, so not fictious
                    persons like corporations ... or things like estates ...
                    so the situation may change if the person you shared the
                    account with dies. --psb
                 \_ thank you psb, it is extremely helpful!
                    \_ !psb   --psb #1 fan, hoping for a comeback
Berkeley CSUA MOTD:2013:May:13 Monday <Tuesday>