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We haven't seen any indication that a wave of bank failures is coming. We haven't seen any failed banks in a couple of years. Now, that could change and we cou
by shkkmo 4y ago
We haven't seen any indication that a wave of bank failures is coming. We haven't seen any failed banks in a couple of years.
Now, that could change and we could see a recurrence of the wave of bank failures that started in 2008 and slowly tapered off, but your argument for that can't just be a hand wave at "trying times" and "fractional reserve" because the numbers currently show the opposite: https://www.fdic.gov/bank/historical/bank/ https://www.fdic.gov/bank/historical/bank/
Still smart to keep total accounts per type per bank under the insurance limit (currently $250,0000), and to directly verify that your accounts are actually insured using the FDIC's tool: https://closedbanks.fdic.gov/aii/ https://closedbanks.fdic.gov/aii/
- kmonsen 4y agoDid any depositors loose money in 2008 from bank failures? If not when was the last time regular depositors lost money?
- deleted 4y ago[deleted]
- shkkmo 4y agoI don't think that information is public to protect privacy...but any balances over the limit in a failed bank would result in non-insured losses.
- jmalicki 4y agoThat's actually not true [1] - the FDIC has continued the practice of covering balances over the insured limit despite not being required to. [1] https://www.americanbanker.com/opinion/will-fdic-keep-protecting-failed-banks-uninsured-deposits https://www.americanbanker.com/opinion/will-fdic-keep-protec...
- shkkmo 4y agoInteresting, glad they're doing that but ok probably best not to count on that policy if you don't have to.
- danuker 4y agoIn 2008, no. "No depositor in an American bank lost a penny to a bank failure." [1] But they were bailed-out by larger banks, and eventually the taxpayer. Next time, there might be bail-ins instead. [2] [1] - https://www.investopedia.com/articles/economics/09/financial-crisis-review.asp#toc-what-is-a-mortgage-backed-security https://www.investopedia.com/articles/economics/09/financial... [2] - https://www.investopedia.com/articles/markets-economy/090716/why-bank-bailins-will-be-new-bailouts.asp https://www.investopedia.com/articles/markets-economy/090716...