Financial advice?

[oregonducker]

If you had a decent amount of cash in a bank that has been reported to be the next to go under. Todays news is better than yesterdays however. What would you do? Take it out? Where would you put it. Another bank? Which one?

 

[avenger79]

Re: Financial advice?

If you had a decent amount of cash in a bank that has been reported to be the next to go under. Todays news is better than yesterdays however. What would you do? Take it out? Where would you put it. Another bank? Which one?

depends if you believe in the gov't insurance against your accounts. If I thought the bank was going under I would move my funds. I'm not going down with the ship no that one.

 

[arboldt]

Re: Financial advice?

I suppose I'd be tempted to take it out, but it's probably not necessary.

IF the accounts are fully insured (FDIC-insured bank with less than $100k per owner), even if the bank goes under, you'll get your money. At worst, if the bank is taken over by the FDIC, it might take a day or two to gain access. But I wouldn't order any more checks or anything.

IF not -- too much money, or in a non-insured account like a money market or brokerage account, you might want to move it.

We don't keep that much money is regular bank accounts -- anything over a certain amount goes to either money-market or mutual funds. Of course, so far this year that hasn't proven to be a smart decision, either.

 

[Tacklewasher]

Re: Financial advice?

We don't keep that much money is regular bank accounts -- anything over a certain amount goes to either money-market or mutual funds. Of course, so far this year that hasn't proven to be a smart decision, either.

Seems the mattress is the best place for cash right now

 

[captquest]

Re: Financial advice?

You'll get most of your money back if it's under 100k. If you have more than 100K don't put it all in one bank.

 

[RubberFrog]

Re: Financial advice?

The type of financial institutions going under aren't the type that typically deal with checkable deposits. If you have enough money that you are dealing with a financial institution of this caliber, seek advice from a professional and not from iboats. No offense.

 

[oregonducker]

Re: Financial advice?

It's a Washington Mutual checking account. Reports say they are closest to being next. I don't have a huge amount there. That wouldn't be real smart at anytime. Just wondering what others would do if it was theirs.
How many banks failures can the FDIC handle?

 

[CATransplant]

Re: Financial advice?

I dunno about you, but it seems to me that asking for financial advice on a boating site is a lot like asking a bank teller how to change the impeller on your outboard. The teller might know, but I'd rather ask someone who works on boats.

But, opening a can of worms is the first step to catching a mess of fish, so what do I know?

 

[oregonducker]

Re: Financial advice?

I know. We're not talking about millions here just asking around to see what people think.

 

[roscoe]

Re: Financial advice?

A run on a bank, is what makes them go under.

Make sure you have enough funds to tie you over for a week, and leave it there.

 

[oregonducker]

Re: Financial advice?

A run on a bank, is what makes them go under.

Make sure you have enough funds to tie you over for a week, and leave it there.

That might be the last straw but it isn't what put them in this position in the first place.

 

[SnappingTurtle]

Re: Financial advice?

The governments in Europe have been begging people not to run to the banks to get there money out during the crashes of the last couple of years here, but those who do, got theirs, and those who didn't, often find their accounts frozen for months.

When we are talking billions and billions and billions in losses, even jerking a couple of million out, is "chump change" to these guys.

Do it, and don't look back.

 

[SnappingTurtle]

Re: Financial advice?

I dunno about you, but it seems to me that asking for financial advice on a boating site is a lot like asking a bank teller how to change the impeller on your outboard. The teller might know, but I'd rather ask someone who works on boats.

But, opening a can of worms is the first step to catching a mess of fish, so what do I know?

LOL! I have to agree, as usual, but ..

While iboats may not be your typical source for finance advice, it couldn't be any worse than what my contacts have gotten from the “big brand names” in finance in the last 12 years or so.

 

[modernrocketry]

Re: Financial advice?

I have a few accounts, Washington Mutual and Citibank being two of my banks.
My partner also works for Citibank and has warned me about WaMu's problems.

So this is my decision and the logic behind it.
1. The money I have in WaMu I will not need in the foreseeable future. If WaMu collapses and I can't get my money for a few weeks, I'm okay with that.
2. I don't have more than 100K in the WaMu account. FDIC will cover my account.
3. I have other sources (other bank accounts) to provide me with liquidity to pay my bills if WaMu closes.

If WaMu is your only account, keep the following in mind. If WaMu collapses, the FDIC will insure them, but once you get your FDIC check, other banks will place long holds on them and the funds will not be immediately available -- especially if you are a new customer. This is because situations like this result in rampant fraud.

On the bright side, WaMu stock has been positive all morning. Also, Chase wants a presence on the West Coast. Maybe Chase could work a deal -- but it would be very complex because WaMu is only an S&L and not a true bank.

 

[modernrocketry]

Re: Financial advice?

While iboats may not be your typical source for finance advice, it couldn't be any worse than what my contacts have gotten from the ?big brand names? in finance in the last 12 years or so.

Amen!

 

[fdmsiv]

Re: Financial advice?

May be important or not, but when you deposit cash there is a level at which the bank has to report to the IRS, I think it is around 10K. Money could be totally legit, but I really don't like the idea of Big Brother looking over my shoulder.

 

[modernrocketry]

Re: Financial advice?

May be important or not, but when you deposit cash there is a level at which the bank has to report to the IRS, I think it is around 10K. Money could be totally legit, but I really don't like the idea of Big Brother looking over my shoulder.

You are correct.
at 10K cash, the bank is obligated to complete a form that goes to the IRS.

 

[BoatBuoy]

Re: Financial advice?

May be important or not, but when you deposit cash there is a level at which the bank has to report to the IRS, I think it is around 10K. Money could be totally legit, but I really don't like the idea of Big Brother looking over my shoulder.

Your Patriot Act at work.

 

[CATransplant]

Re: Financial advice?

Your Patriot Act at work.

Not really. Those bank reporting laws were in effect before the Patriot Act was ever thought of. More like the IRS at work.

Sorry, but that didn't start after 9/11. It's been around a long time.

 

[Tacklewasher]

Re: Financial advice?

Not really. Those bank reporting laws were in effect before the Patriot Act was ever thought of. More like the IRS at work.

Sorry, but that didn't start after 9/11. It's been around a long time.

Money laundering laws aimed more a drug suppliers than terrorists.

Got the same kind of thing up here, and have had it for years. Also before 9/11.