Hello:
The federal seizure of IndyMac Bancorp marks the fifth bank to have failed
so far this year. Much of IndyMac's business was built on so-called Alt-A
single-family mortgages, which were often made to borrowers with poor credit.
As the secondary market for these loans collapsed, IndyMac's financial condition
turned precarious. The Federal Deposit Insurance Corporation (FDIC) will bear
the bulk of the financial burden of IndyMac's failure, predicting that its
collapse will cost the deposit-insurance fund between $4 billion and $8 billion,
possibly making it the costliest bank failure ever.
Many investors are wondering how protected they are under the terms of FDIC
Insurance. According to the Wall Street Journal, the Federal Deposit Insurance
Corporation (FDIC) insures deposits of up to $100,000 per depositor per bank,
or $250,000 for most retirement accounts, including any accrued interest.
It guarantees that depositors with sums below those ceilings will get all
their money back.
However, a surprising proportion of deposits exceed those limits. Investors
are now re-examining the health of their banks and the amount of their deposits
at any one bank.
Are your deposits exceeding the FDIC limit for insurance at any one bank?
Consider buying more of your CD's through us. We are able to shop the nation
for the best rates from quality institutions. For more information, reply
to this email or call us at 800.727.0941.
Terri
G. Millson, CIMA, CIMC
President |
Ray
Dicius, CSA, GEPC
LPL Branch Manager |
07/14/2008