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> Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional ban
by phil21 4y ago
> Alternately there is the question of why Americans open accounts with the likes of Wells Fargo when you get better service from credit unions and regional banks.
In my case, they have been demonstrated as too big for the government to allow to fail. Smaller banks have not.
That moral hazard is why I still keep accounts with big banks.
- PaulHoule 4y agoThey are all insured with the FDIC or NCUA. My parents banked with Merchant's National Savings Bank in Manchester, NH -- there was a lot of turbulence in banking in that area and it failed, got merged with another bank and the process repeated at least five times in the 1980s. The service was seamless throughout all of that with the strange detail that they got a letter from the bank when their mortgage was a year from ending that said their payment had been miscalculated and they owed more money. I told my mom that she could contact the state regulator and in the end the bank backed down and even let her off the hook for the last three payments! Later on I had an account at an S&L in Socorro, NM and that S&L failed during https://en.wikipedia.org/wiki/Savings_and_loan_crisis https://en.wikipedia.org/wiki/Savings_and_loan_crisis and got rolled into another S&L which was mostly a matter of the name changing and going to a different branch.