Banking Safely in Troubling Times
By: Jim | October 08, 2008 | Category: Money
On October 3, the President signed into law the Emergency Economic Stabilization Act of 2008. Commonly referred to as the bailout, feedback on Colleen's recent bailout comments indicate that some call it other things. Whether you were for or against the legislation, there are a few details in it to be aware of.
For example, it includes a provision temporarily raising the cap on federally insured deposits from $100,000 to $250,000. This provision will expire at the end of 2009. It's important to remember that there is no indication that the provision will be extended or become a permanent change. This applies both to banks insured by the FDIC and to credit unions insured by the National Credit Union Administration.
Your money is safe if you're using a financial institution insured by the FDIC or NCUA. But I admit that the recent headlines about bank closures made me curious about my bank's soundness and what I'd go through if my bank failed. Although the FDIC never releases its ratings on the safety and soundness of banks and thrift institutions to the public, it does provide information on private companies that provide their own ratings of bank safety, often for a fee. FDIC's information on when a bank fails helped me get an idea of what to expect if that happened.
If you're looking for a new bank or credit union, the Consumer Action website has some helpful tips. Check out MyMoney.gov's Saving and Investing page to learn more about banking, interest rates, how to complain about a financial institution, and more.
Have you experienced the closure of your bank or credit union by the FDIC or NCUA?
Permalink | Post a Comment | View Comments [4] | E-mail This Entry | Tags: bank colleen credit_union fdic jim money ncua saving
Posted by REVERSE VALUE on October 08, 2008 at 03:35 PM EDT
Cost,Price,value ,let me explain. 1- Cost is the result of produce 2-Price is what this or that is going to be sold 3- Value is what the consumer will acept and paid . When there is a dozen of foreclosures ,the problem is normal and the routine continue ,business as usual,but when there is twousands all over the place , reverse the value will help to void such foreclosure,the Bank dont lose having an empty home , and dont paid the yearly Taxes,because the home buyer is still in the property making reasonable payments to the bank and at the end of the year,will paid the Tax acordingly.
Hope my simple solution help to those in distress.
Jorge guerrero Alhambra California.
jtguerrero940@msn.com Comment Permalink | Post a New Comment
Posted by Someone Else on October 09, 2008 at 01:55 PM EDT
how about this as a work around: all of these adjustable rate mortgages that are adjusting and increasing to rates that people cannot afford, how about a moratorium on resetting. Reduce the rates to the lowest rate allowed by the contract, typically the initial rate, but protect the banks froma an exorbitantly low rate, so something indexed to inflation or the prime rate in cases where the beginning rate was a "loss leader", or perhaps the higher of the lowest allowed rate under the ARM or 5%. This should be a condition of any bank receing funds under the EESA. It wil protect both the consumers and the banks, while being slightly punishing on the banks for their bad behavior. It is also completely voluntary as a condition of accepting the "bailout"
people need to hold themselves responsible for their actions, and the public also needs to hold society as a whole, and individually accountable. It is a shame that I, a single parent struggling to make ends meet, have to bail out Wall Street bankers living the high life, because they made bad decisions. Comment Permalink | Post a New Comment
Posted by Andy J on October 13, 2008 at 06:02 PM EDT
Credit limits are being lowered on 10% of credit card accounts and if this impacts you, your credit score is going to decline. You want to prevent this from happening by staying on top of your credit card statements and by using your cards wisely [not too much or not too little]. Keep your balances low and only use 10-20% of your available balances.
Other good credit scoring education websites:
http://www.fico.org
http://www.videocreditscore.com
Comment Permalink | Post a New Comment
Posted by The Queen on December 21, 2008 at 04:56 AM EST
To the citizens of the United States of America from Her Sovereign
Majesty Queen Elizabeth II
In light of Wall Street starting this horrible run on the financial
markets and creating mayhem in other world markets and
In light of your failure in recent years to nominate competent candidates for President of the USA and thus to govern ourselves, we hereby give notice of the revocation of your independence, effective immediately.
Her Sovereign Majesty Queen Elizabeth II will resume monarchical duties over all states, commonwealths, and territories (except Kansas , which she does not fancy).
Your new Prime Minister, Gordon Brown, will appoint a Governor for America without the need for further elections.
Congress and the Senate will be disbanded.
A questionnaire may be circulated next year to determine whether any of you noticed.
To aid in the transition to a British Crown dependency, the following rules are introduced with immediate effect:
(You should look up 'revocation' in the Oxford English Dictionary.)
1. Then look up aluminium, and check the pronunciation guide. You will be amazed at just how wrongly you have been pronouncing it.
2. The letter 'U' will be reinstated in words such as 'colour', 'favour', 'labour' and 'neighbour.' Likewise, you will learn to spell 'doughnut' without skipping half the letters, and the suffix '-ize' will be replaced by the suffix '-ise'. Generally, you will be expected to raise your vocabulary to acceptable levels. (look up 'vocabulary').
3. Using the same twenty-seven words interspersed with filler noises such as 'like' and 'you know' is an unacceptable and inefficient form of communication. There is no such thing as US English. We will let M*crosoft know on your behalf. The M*crosoft spell-checker will be adjusted to take into account the reinstated letter 'u' and the elimination of -ize.
4. July 4th will no longer be celebrated as a holiday.
God Save the Queen!
Comment Permalink | Post a New Comment