6 ms·

yeah but realistically will any person ever lose assets in a bank? I know in the 2008 crisis they made (or maybe it was just they said they would make) any per

yeah but realistically will any person ever lose assets in a bank? I know in the 2008 crisis they made (or maybe it was just they said they would make) any personal accounts good; if it was over the limit (I think that's FICA) or not.

stingraycharles 5y ago
Yes, it actually happened in The Netherlands a bit over a decade ago, after the financial crisis. If you had more than 100k in savings in there (and they were known for their attractive savings rate), you would be in trouble. https://en.m.wikipedia.org/wiki/DSB_Bank https://en.m.wikipedia.org/wiki/DSB_Bank
ascar 5y ago
Does (or did) the US have laws that protect a certain amount of savings? I would assume since the 100k are guaranteed by law that the state does not further step in on losses above that. When there is no law like that in place the situation is entirely different.
- blitzar 5y ago
  https://www.fdic.gov/deposit/deposits/faq.html https://www.fdic.gov/deposit/deposits/faq.html FDIC deposit insurance, 250k per FDIC-insured bank, per ownership category.
  - dcolkitt 5y ago
    Also add this is per person including beneficiaries. So a family of four has $1mn in FDIC coverage.
blitzar 5y ago
https://www.reuters.com/article/us-cyprus-banks-idUSKBN1K3242 https://www.reuters.com/article/us-cyprus-banks-idUSKBN1K324... https://en.wikipedia.org/wiki/Icesave_dispute https://en.wikipedia.org/wiki/Icesave_dispute Are the two that come to mind. Cyprus deposits in a couple of banks in 2013 above 100k were lost I believe. Icesave played out badly in the UK in 08, quite a few councils etc took some nasty lossses. Either way, waiting for multiple years, winding up and down of court cases, bankrupcy proceedings etc to find out if the rest of your money is gone or not is not much fun. The kind of person parking a couple of 100k in cash accounts is almost by definition risk averse.
throw3849 5y ago
My friend lost 1M in Cypriot bank. There are many stories about frozen assets. If you have decent money, using single account/country is not just lazy, but stupid.
- GDC7 5y ago
  If you have decent money you go with the best, no need to spread: Below the list of the world's top 50 safest banks https://d2tyltutevw8th.cloudfront.net/media/document/press-release-worlds-safest-banks-2020-1602792478.pdf https://d2tyltutevw8th.cloudfront.net/media/document/press-r...
- wizzwizz4 5y ago
  I haven't found any of these stories. Care to share a news article?
  - rutthenut 5y ago
    Search for "Laiki bank account" and that gives plenty of info about Cyprus money re-appropriation, for example. Iceland bank issues were widely covered too
    - wizzwizz4 5y ago
      I couldn't find anything about re-appropriation. Just about the bank having problems, and the accounts being moved to a different bank.

stingraycharles 5y ago

Yes, it actually happened in The Netherlands a bit over a decade ago, after the financial crisis. If you had more than 100k in savings in there (and they were known for their attractive savings rate), you would be in trouble. https://en.m.wikipedia.org/wiki/DSB_Bank https://en.m.wikipedia.org/wiki/DSB_Bank

ascar 5y ago

Does (or did) the US have laws that protect a certain amount of savings? I would assume since the 100k are guaranteed by law that the state does not further step in on losses above that. When there is no law like that in place the situation is entirely different.

blitzar 5y ago
https://www.fdic.gov/deposit/deposits/faq.html https://www.fdic.gov/deposit/deposits/faq.html FDIC deposit insurance, 250k per FDIC-insured bank, per ownership category.
- dcolkitt 5y ago
  Also add this is per person including beneficiaries. So a family of four has $1mn in FDIC coverage.

blitzar 5y ago

https://www.reuters.com/article/us-cyprus-banks-idUSKBN1K3242 https://www.reuters.com/article/us-cyprus-banks-idUSKBN1K324... https://en.wikipedia.org/wiki/Icesave_dispute https://en.wikipedia.org/wiki/Icesave_dispute Are the two that come to mind. Cyprus deposits in a couple of banks in 2013 above 100k were lost I believe. Icesave played out badly in the UK in 08, quite a few councils etc took some nasty lossses. Either way, waiting for multiple years, winding up and down of court cases, bankrupcy proceedings etc to find out if the rest of your money is gone or not is not much fun. The kind of person parking a couple of 100k in cash accounts is almost by definition risk averse.

throw3849 5y ago

My friend lost 1M in Cypriot bank. There are many stories about frozen assets. If you have decent money, using single account/country is not just lazy, but stupid.

GDC7 5y ago
If you have decent money you go with the best, no need to spread: Below the list of the world's top 50 safest banks https://d2tyltutevw8th.cloudfront.net/media/document/press-release-worlds-safest-banks-2020-1602792478.pdf https://d2tyltutevw8th.cloudfront.net/media/document/press-r...
wizzwizz4 5y ago
I haven't found any of these stories. Care to share a news article?
- rutthenut 5y ago
  Search for "Laiki bank account" and that gives plenty of info about Cyprus money re-appropriation, for example. Iceland bank issues were widely covered too
  - wizzwizz4 5y ago
    I couldn't find anything about re-appropriation. Just about the bank having problems, and the accounts being moved to a different bank.