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Posted: 12/16/2009 5:22:46 PM EDT
I am really freaked out mainly because I have no idea how this works.  I also just cashed out my retirement and am waiting for it to be direct deposited.  They have not deposited it yet but the rumour states the banks doors are closing on friday.  I want to make sure I am not going to get fucked.  What do I do?
Link Posted: 12/16/2009 5:23:55 PM EDT
Are they closing down or being bought out?
Link Posted: 12/16/2009 5:25:23 PM EDT
Originally Posted By TechGal26:
Are they closing down or being bought out?


I am not sure, there is no info on the banks website.

Link Posted: 12/16/2009 5:27:31 PM EDT
is it more then 100k or 250k? if so worry, if not dont
Link Posted: 12/16/2009 5:28:49 PM EDT
not even close to 100k.  How long does it take to get money from fdic though?
Link Posted: 12/16/2009 5:29:51 PM EDT
Even if it does close who cares? I mean who cares on a personal financial level, not a national patriotic level.

Anyway its called FDIC. Collect your finances, switch banks, move on.
Link Posted: 12/16/2009 5:30:06 PM EDT



Originally Posted By callmestick:


not even close to 100k.  How long does it take to get money from fdic though?


How soon are you retiring?



 
Link Posted: 12/16/2009 5:31:34 PM EDT
I went through this with WAMU. I was without access to my bank account (online) for two days. ATM card didn't work. NBD
Link Posted: 12/16/2009 5:32:45 PM EDT
Originally Posted By MarkNH:

Originally Posted By callmestick:
not even close to 100k.  How long does it take to get money from fdic though?

How soon are you retiring?
 


bout 30-35 years.

Link Posted: 12/16/2009 5:33:14 PM EDT
What bank, pray tell.
Link Posted: 12/16/2009 5:34:09 PM EDT
Originally Posted By callmestick:
not even close to 100k.  How long does it take to get money from fdic though?


depends, if the bank is sold to another your money will be available as normal on monday ( well really whenever the transaction holds expire). If the bank is not bought they FDIC will cut you a check which may take a little longer.
Link Posted: 12/16/2009 5:36:22 PM EDT
small local bank.  I don't want to give out the name because I don't want people running and withdrawing their money.
Link Posted: 12/16/2009 5:36:53 PM EDT
Bank & Credit Union Ratings

Supposed to be reliable.....
Link Posted: 12/16/2009 5:37:22 PM EDT
IM me and I'll check its rating.
Link Posted: 12/16/2009 5:39:00 PM EDT
Get your money out before Friday.  That's when the FDIC moves in, and they are running low on cash to insure depositors.
Link Posted: 12/16/2009 5:39:31 PM EDT
Originally Posted By Tanker06:
Bank & Credit Union Ratings

Supposed to be reliable.....


They got a zero, things are not looking good.

Link Posted: 12/16/2009 5:39:41 PM EDT
Obviously this is your fault.
Link Posted: 12/16/2009 5:40:43 PM EDT
Originally Posted By raven:
Get your money out before Friday.  That's when the FDIC moves in, and they are running low on cash to insure depositors.


Problem is if my retirement is not deposited by Friday I am screwed.

Link Posted: 12/16/2009 5:41:15 PM EDT
Originally Posted By raven:
Get your money out before Friday.  That's when the FDIC moves in, and they are running low on cash to insure depositors.


actually they are a couple billion in the hole, but no ones gonna impose reality on them
Link Posted: 12/16/2009 5:41:22 PM EDT
Originally Posted By Steve_in_Washington:
Obviously this is your fault.


You lost me?


Link Posted: 12/16/2009 5:42:13 PM EDT



Originally Posted By callmestick:

I also just cashed out my retirement and am waiting for it to be direct deposited.\


Wait wait wait, are you actually retiring or did you cash out an IRA or something?


 
Link Posted: 12/16/2009 5:43:59 PM EDT
Originally Posted By Tekka:

Originally Posted By callmestick:
I also just cashed out my retirement and am waiting for it to be direct deposited.\

Wait wait wait, are you actually retiring or did you cash out an IRA or something?  


I cashed out my 401k from a previous employer to pay off my second mortgage on a house I am loosing money to rent out.

Link Posted: 12/16/2009 5:44:00 PM EDT
[Last Edit: 12/16/2009 5:45:02 PM EDT by Dave_A]





Originally Posted By callmestick:



not even close to 100k.  How long does it take to get money from fdic though?



They don't let it come to that...





While some folks have given me shit for my 'no banks have actually failed' comment, given how the FDIC has been operating, that statement is correct...





The FDIC has been doing 'shotgun weddings' of 'sick' banks with 'healthy' ones, with the intention of preventing the sort of irrational panic that would happen if any banks were actually allowed to fail...





So what will likely happen, is you will go to the bank one Monday morning (it's always done on a Friday) and find it under new ownership... With all your accounts just like they were the friday before...





Nothing more, nothing less....





 
Link Posted: 12/16/2009 5:44:10 PM EDT
Originally Posted By RyJones:
I went through this with WAMU. I was without access to my bank account (online) for two days. ATM card didn't work. NBD


Weird I never had a hiccup with any of my stuff hell I just finally got a chase card last week. Been using my old wamu one still.

T
Link Posted: 12/16/2009 5:44:13 PM EDT




Originally Posted By callmestick:



Originally Posted By Steve_in_Washington:

Obviously this is your fault.




You lost me?







Sorry, I was trying to beat the rest of GD who would have come up with a reason to blame you.



If the FDIC steps in, you shouldn't see any interruption in operations.  



I do suggest that everyone have accounts at multiple banks, though, just in case.

Link Posted: 12/16/2009 5:44:54 PM EDT




Originally Posted By callmestick:



Originally Posted By Tekka:





Originally Posted By callmestick:

I also just cashed out my retirement and am waiting for it to be direct deposited.\


Wait wait wait, are you actually retiring or did you cash out an IRA or something?




I cashed out my 401k from a previous employer to pay off my second mortgage on a house I am loosing money to rent out.





You know you are going to have to pay income tax + a 10% penalty on that, right?

Link Posted: 12/16/2009 5:45:21 PM EDT
oh great, I'm moving to Utah in the next couple of weeks and I need to get a new Bank since BofA doesn't exist there

 
Link Posted: 12/16/2009 5:45:56 PM EDT
Originally Posted By callmestick:
Originally Posted By Steve_in_Washington:
Obviously this is your fault.


You lost me?






This is GD your sarcasm meter is broken
Link Posted: 12/16/2009 5:49:12 PM EDT
Go to - http://usedlions.com/links.htm and about halfway down the page are the links to two sites that can give you detailed reports on the status of your bank.
Link Posted: 12/16/2009 5:51:01 PM EDT
Originally Posted By Dave_A:

Originally Posted By callmestick:
not even close to 100k.  How long does it take to get money from fdic though?

They don't let it come to that...

While some folks have given me shit for my 'no banks have actually failed' comment, given how the FDIC has been operating, that statement is correct...

The FDIC has been doing 'shotgun weddings' of 'sick' banks with 'healthy' ones, with the intention of preventing the sort of irrational panic that would happen if any banks were actually allowed to fail...

So what will likely happen, is you will go to the bank one Monday morning (it's always done on a Friday) and find it under new ownership... With all your accounts just like they were the friday before...

Nothing more, nothing less....
 


This is one where Dave_A does have it right....no bank has technically failed.....they reached a level of insolvency where .gov stepped in and arranged for the failing
bank to be taken over by an other bank.  The FDIC used it's assets to guarantee that the bank taking over the failed bank was not put in jeopardy.
To date lots of banks have gone insolvent....none have technically failed because they were merged ( some by force others not) with other banks before they
could default on any obligations.

As long as the FDIC can keep pulling this trick off there should be no runs on banks......if this tactic starts faltering and banks actually default preventing account
holders from getting their money at will things will change....and not for the good.
Link Posted: 12/16/2009 5:57:54 PM EDT
Originally Posted By thexrayboy:
Originally Posted By Dave_A:

Originally Posted By callmestick:
not even close to 100k.  How long does it take to get money from fdic though?

They don't let it come to that...

While some folks have given me shit for my 'no banks have actually failed' comment, given how the FDIC has been operating, that statement is correct...

The FDIC has been doing 'shotgun weddings' of 'sick' banks with 'healthy' ones, with the intention of preventing the sort of irrational panic that would happen if any banks were actually allowed to fail...

So what will likely happen, is you will go to the bank one Monday morning (it's always done on a Friday) and find it under new ownership... With all your accounts just like they were the friday before...

Nothing more, nothing less....
 


This is one where Dave_A does have it right....no bank has technically failed.....they reached a level of insolvency where .gov stepped in and arranged for the failing
bank to be taken over by an other bank.  The FDIC used it's assets to guarantee that the bank taking over the failed bank was not put in jeopardy.
To date lots of banks have gone insolvent....none have technically failed because they were merged ( some by force others not) with other banks before they
could default on any obligations.

As long as the FDIC can keep pulling this trick off there should be no runs on banks......if this tactic starts faltering and banks actually default preventing account
holders from getting their money at will things will change....and not for the good.


and every one of those banks would have resulted in 0 loss to the FDIC if they had done their job. These banks should have been siezed when they missed reserve ratios not when they hit 20-40% losses.

Right now a conservative estimate would be half the banks in the country should have been siezed
Link Posted: 12/16/2009 6:00:12 PM EDT
Originally Posted By LORD-eX-Bu:
oh great, I'm moving to Utah in the next couple of weeks and I need to get a new Bank since BofA doesn't exist there  
mine should be out of buisness by then.

Link Posted: 12/16/2009 6:00:17 PM EDT



Originally Posted By callmestick:



Originally Posted By Tekka:




Originally Posted By callmestick:

I also just cashed out my retirement and am waiting for it to be direct deposited.\


Wait wait wait, are you actually retiring or did you cash out an IRA or something?
 




I cashed out my 401k from a previous employer to pay off my second mortgage on a house I am loosing money to rent out.











 
I don't know everything about your situation, but cashing out a retirement account tends to be one of the worst things someone can ever do.
Link Posted: 12/16/2009 6:03:07 PM EDT
my bank was bought out a month and it was painless.
Link Posted: 12/16/2009 6:05:21 PM EDT
Originally Posted By Steve_in_Washington:

Originally Posted By callmestick:
Originally Posted By Tekka:

Originally Posted By callmestick:
I also just cashed out my retirement and am waiting for it to be direct deposited.\

Wait wait wait, are you actually retiring or did you cash out an IRA or something?


I cashed out my 401k from a previous employer to pay off my second mortgage on a house I am loosing money to rent out.


You know you are going to have to pay income tax + a 10% penalty on that, right?


Yup,  It's either that or live with my parents for another 5 years at least while I pay off the second.  I took a huge pay cut when I got laid off, I have a great job with a local city now but revenue is low so no raises for quite some time.  I was very lucky to get a job period so I am not leaving to be at the bottom of the ladder at a company that I have no Idea how solid they are.  With cashing out my retirement, I can pay the rest of my second off in a year maybe less and then may be able to buy a house with what I make and keep my house in California to use as income when I retire.  Or sell it when the value gets back to where it's worth selling.

Link Posted: 12/16/2009 6:08:31 PM EDT
Originally Posted By Orion_Shall_Rise:
Originally Posted By thexrayboy:
Originally Posted By Dave_A:

Originally Posted By callmestick:
not even close to 100k.  How long does it take to get money from fdic though?

They don't let it come to that...

While some folks have given me shit for my 'no banks have actually failed' comment, given how the FDIC has been operating, that statement is correct...

The FDIC has been doing 'shotgun weddings' of 'sick' banks with 'healthy' ones, with the intention of preventing the sort of irrational panic that would happen if any banks were actually allowed to fail...

So what will likely happen, is you will go to the bank one Monday morning (it's always done on a Friday) and find it under new ownership... With all your accounts just like they were the friday before...

Nothing more, nothing less....
 


This is one where Dave_A does have it right....no bank has technically failed.....they reached a level of insolvency where .gov stepped in and arranged for the failing
bank to be taken over by an other bank.  The FDIC used it's assets to guarantee that the bank taking over the failed bank was not put in jeopardy.
To date lots of banks have gone insolvent....none have technically failed because they were merged ( some by force others not) with other banks before they
could default on any obligations.

As long as the FDIC can keep pulling this trick off there should be no runs on banks......if this tactic starts faltering and banks actually default preventing account
holders from getting their money at will things will change....and not for the good.


and every one of those banks would have resulted in 0 loss to the FDIC if they had done their job. These banks should have been siezed when they missed reserve ratios not when they hit 20-40% losses.

Right now a conservative estimate would be half the banks in the country should have been siezed


No argument there....and if the feds had done their jobs in overseeing Wall St. we would not be facing the fiasco we have watched unfold over the last couple
of years.  but DC pollys don't work that way, no glory or profit in actaully doing their job correctively and proactively.
Link Posted: 12/16/2009 6:09:46 PM EDT
Originally Posted By Dave_A:

Originally Posted By callmestick:
not even close to 100k.  How long does it take to get money from fdic though?

They don't let it come to that...

While some folks have given me shit for my 'no banks have actually failed' comment, given how the FDIC has been operating, that statement is correct...

The FDIC has been doing 'shotgun weddings' of 'sick' banks with 'healthy' ones, with the intention of preventing the sort of irrational panic that would happen if any banks were actually allowed to fail...

So what will likely happen, is you will go to the bank one Monday morning (it's always done on a Friday) and find it under new ownership... With all your accounts just like they were the friday before...

Nothing more, nothing less....
 


This is exactly what happened to me and the missus two weeks ago when Amtrust (Ohio) failed.  Friday night the bank was seized by FDIC, and was immediately sold to New York Commerce Bank.  All branches opened for business Saturday.   We haven't been inconvenienced in the slightest.  Checks are still good, cards work, branches are open, automatic deposits and transfers are happening, etc.
Link Posted: 12/16/2009 6:09:53 PM EDT
Originally Posted By callmestick:
I am really freaked out mainly because I have no idea how this works.  I also just cashed out my retirement and am waiting for it to be direct deposited.  They have not deposited it yet but the rumour states the banks doors are closing on friday.  I want to make sure I am not going to get fucked.  What do I do?


I don't know, but you're about to be guilty of insider trading.
Link Posted: 12/16/2009 6:14:03 PM EDT
Originally Posted By Tekka:

Originally Posted By callmestick:
Originally Posted By Tekka:

Originally Posted By callmestick:
I also just cashed out my retirement and am waiting for it to be direct deposited.\

Wait wait wait, are you actually retiring or did you cash out an IRA or something?  


I cashed out my 401k from a previous employer to pay off my second mortgage on a house I am loosing money to rent out.



 
I don't know everything about your situation, but cashing out a retirement account tends to be one of the worst things someone can ever do.


I work for a local city, I can't collect retirment from the state retirement system or the 401a b or what ever the hell the 2nd retirement plan the city has for me untill I am 65 that is 30 years from now also once they give me a raise I plan on starting a 457 with all or a portion of the raise.

Link Posted: 12/16/2009 6:14:53 PM EDT
Originally Posted By Schadenfreuda:
Originally Posted By callmestick:
I am really freaked out mainly because I have no idea how this works.  I also just cashed out my retirement and am waiting for it to be direct deposited.  They have not deposited it yet but the rumour states the banks doors are closing on friday.  I want to make sure I am not going to get fucked.  What do I do?


I don't know, but you're about to be guilty of insider trading.


I guess I am good, the rumor was in the local paper today too.

Link Posted: 12/16/2009 6:19:21 PM EDT
You wont even know it happened. Monday will be business as usual, just like all the others this year.
Link Posted: 12/16/2009 6:21:45 PM EDT
Originally Posted By callmestick:
Originally Posted By Tanker06:
Bank & Credit Union Ratings

Supposed to be reliable.....


They got a zero, things are not looking good.



Yikes, I looked up my bank, and they only have 1 star!
Link Posted: 12/16/2009 6:34:40 PM EDT



Originally Posted By callmestick:



Originally Posted By Tekka:




Originally Posted By callmestick:


Originally Posted By Tekka:




Originally Posted By callmestick:

I also just cashed out my retirement and am waiting for it to be direct deposited.\


Wait wait wait, are you actually retiring or did you cash out an IRA or something?
 




I cashed out my 401k from a previous employer to pay off my second mortgage on a house I am loosing money to rent out.









 
I don't know everything about your situation, but cashing out a retirement account tends to be one of the worst things someone can ever do.




I work for a local city, I can't collect retirment from the state retirement system or the 401a b or what ever the hell the 2nd retirement plan the city has for me untill I am 65 that is 30 years from now also once they give me a raise I plan on starting a 457 with all or a portion of the raise.





You can usually start collecting money from your retirement accounts without penalties before age 65.
You just have to know the IRS codes and rules which follow certain mathematical formulas which are revised every year.



Anyway, you likely won't be able to recoup the financial momentum you've lost by cashing out early. It takes thirty years of compounding interest to get to the point where you can't mathematically run out of money. I don't know how much you had invested and what not, but you might end up needing to double or triple the amount of money you invest every year, later on in your life, to make up for the time you've lost.
Link Posted: 12/17/2009 5:39:55 AM EDT
Originally Posted By Tekka:

Originally Posted By callmestick:
Originally Posted By Tekka:

Originally Posted By callmestick:
Originally Posted By Tekka:

Originally Posted By callmestick:
I also just cashed out my retirement and am waiting for it to be direct deposited.\

Wait wait wait, are you actually retiring or did you cash out an IRA or something?  


I cashed out my 401k from a previous employer to pay off my second mortgage on a house I am loosing money to rent out.



 
I don't know everything about your situation, but cashing out a retirement account tends to be one of the worst things someone can ever do.


I work for a local city, I can't collect retirment from the state retirement system or the 401a b or what ever the hell the 2nd retirement plan the city has for me untill I am 65 that is 30 years from now also once they give me a raise I plan on starting a 457 with all or a portion of the raise.


You can usually start collecting money from your retirement accounts without penalties before age 65. You just have to know the IRS codes and rules which follow certain mathematical formulas which are revised every year.

Anyway, you likely won't be able to recoup the financial momentum you've lost by cashing out early. It takes thirty years of compounding interest to get to the point where you can't mathematically run out of money. I don't know how much you had invested and what not, but you might end up needing to double or triple the amount of money you invest every year, later on in your life, to make up for the time you've lost.


Believe me, I didn't do this without putting alot of thought into it.   I have 2 full retirement plans the city pays for, the city opted out of social security at some point way back when when they were allowed to do that.  Also doing this makes it easier to hold onto the house I have in California so in 20 years when it is paid off it will be a source of income.  My parents also pointed out that by the time I can retire they will be dead and are insured up the ass.  I may not live like a rockstar in my retirment but I will live.
Link Posted: 12/17/2009 5:43:57 AM EDT
I went through this almost 2 years ago when Netbank hit an iceberg and sank.  Your direct deposit will be fine.  My direct deposits kept working fine for almost 2 months after the accounts were transitioned over to ING by FDIC, and then all I had to do was update my direct deposit form with my employer.
Link Posted: 12/17/2009 5:49:17 AM EDT
Originally Posted By callmestick:


Believe me, I didn't do this without putting alot of thought into it.   I have 2 full retirement plans the city pays for, the city opted out of social security at some point way back when when they were allowed to do that.  Also doing this makes it easier to hold onto the house I have in California so in 20 years when it is paid off it will be a source of income.  My parents also pointed out that by the time I can retire they will be dead and are insured up the ass.  I may not live like a rockstar in my retirment but I will live.[/div]

This part is piss poor planning - there are so many things working against you on this one - I'll bet you a cup of coffee you won't see any insurance money unless they die in the next 6 months and even then it is iffy at best.
Link Posted: 12/17/2009 5:55:20 AM EDT
[Last Edit: 12/17/2009 5:56:11 AM EDT by Baldmonk]
Originally Posted By callmestick:
not even close to 100k.  How long does it take to get money from fdic though?


Took 3 years during the S&L crisis. Ask me how I know. I lost 3 years of double digit intrest in the mean time.

I don't know how long with the FDIC these days. It's not a good omen being that the FDIC is currently bankrupt.
Link Posted: 12/17/2009 5:56:01 AM EDT
[Last Edit: 12/17/2009 5:57:26 AM EDT by America-first]
Originally Posted By thexrayboy:
Originally Posted By Dave_A:

Originally Posted By callmestick:
not even close to 100k.  How long does it take to get money from fdic though?

They don't let it come to that...

While some folks have given me shit for my 'no banks have actually failed' comment, given how the FDIC has been operating, that statement is correct...

The FDIC has been doing 'shotgun weddings' of 'sick' banks with 'healthy' ones, with the intention of preventing the sort of irrational panic that would happen if any banks were actually allowed to fail...

So what will likely happen, is you will go to the bank one Monday morning (it's always done on a Friday) and find it under new ownership... With all your accounts just like they were the friday before...

Nothing more, nothing less....
 


This is one where Dave_A does have it right....no bank has technically failed.....they reached a level of insolvency where .gov stepped in and arranged for the failing
bank to be taken over by an other bank.  The FDIC used it's assets to guarantee that the bank taking over the failed bank was not put in jeopardy.
To date lots of banks have gone insolvent....none have technically failed because they were merged ( some by force others not) with other banks before they
could default on any obligations.

As long as the FDIC can keep pulling this trick off there should be no runs on banks......if this tactic starts faltering and banks actually default preventing account
holders from getting their money at will things will change....and not for the good.


General Motors hasn't "technically failed" either.

The old company, General Motors, symbol GM having been bailed out by 52 billion dollars of government money is now Motors Liquidation Company, symbol MTLQQ.PK and it is still producing automobiles.

GM; as well as the banks that went tits up haven't "technically" failed.
Link Posted: 12/17/2009 5:57:12 AM EDT
Originally Posted By junkdog:
Originally Posted By callmestick:
Originally Posted By Steve_in_Washington:
Obviously this is your fault.


You lost me?






This is GD your sarcasm meter is broken




Yeah...this.
Link Posted: 12/17/2009 5:59:34 AM EDT
The FDIC will take over, and maintain the accounts.  By 'maintain', I mean by forcing creating good deals so that healthy banks 'voluntarily' acquire them.
Link Posted: 12/17/2009 7:09:21 AM EDT
Originally Posted By HubMcCaan:


This part is piss poor planning - there are so many things working against you on this one - I'll bet you a cup of coffee you won't see any insurance money unless they die in the next 6 months and even then it is iffy at best.


If you are implying that insurance companies are going to be going under, I believe my 401k would be pretty much useless around that point too.


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