Two More Banks Failed Yesterday per the FDIC?

Question

Yesterday, 07/25/08, 1st National Bank of Nevada and 1st Heritage Bank, Newport Beach, CA were locked up by FDIC. 28 locations are involved. I banked at one of these banks years ago. Are you watching your banks per the FDIC website?

Answer 1

There's nothing to worry about.  About 250 banks fail every year in the US and your funds are insured by the FDIC.  There wasn't a single case where people lost their money due to bank closures in the US.

Answer 2

You are misunderstanding something.

The lady had 200k.  She could have 500K.

People are allowed to have as much as they like in the bank, but it is only insured up to 100k, and only if it is the kind of investment that is protected, like a savings account or a checking account.

The banking industry really screwed up with the mortgage crisis.  A lot more are going to go bust because of that.  Different things in our economy can cause banks to go bust.

The answer is to understand the rules, the risks, the insurance, and diversity diversify diversify.  Do not put all your earnings into one kind of financial instrument ... use IRAS, BONDS, STOCKS, REAL ESTATE, SKILLS

so that if & when one area goes bust, you have some wealth in other areas.

The FDIC is not the only source of rules & wisdom.

There are books on managing your money.

There are bank rating services that tell you which banks, which credit cards are at risk.

The SEC has info on which brokers doing shady deals.