WAMU investments?

Question

If WAMU bank collasped what would happen to WAMU investments, like the IRA's and such? I know savings accounts, etc are FDIC insured but would someone else take over the funds or would you lose it all?

Thanks

Answer 1

If the investments are FDIC insured, they would be turned over to the consolidating bank (The bank that takes over or "buys out" WaMu under the Fed's supervision).  You will not loose those assets, so long as they amount to less than $100k.  If they are more that $100k, you will likely loose some of your money.

Investments (like mutual funds but not money market funds) are insured by a different federal arm and are also protected.  It is unlikely that you would loose any of that money.