Countrywide bank - is it safe?

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Submitted by kev374 on November 12, 2007 - 4:31pm

Was about to open a CD at CountryWide bank but after reading this I am a bit hesistant. I know it's FDIC insured but if the bank does go under does the insurance guarantee the full amount? Will I have to go through hoops to get my money back from FDIC?

What if the bank is under some criminal investigation and their assets are frozen will there be a situation in which the depositors are in limbo until the outcome of the case is determined? Just putting some thoughts out there...
the rate is very good right now at 5.4% APY on a 6month CD.

http://www.mercurynews.com/news/ci_74429...

‹ When will investors buy? Qualifying income for $1m - quaint? ›
A couple of weeks ago, I
Submitted by patientlywaiting on November 12, 2007 - 4:48pm.

A couple of weeks ago, I opened a CD with Countrywide at 5.65% APY (looks like rates have come down a little). It should not be a problem even in case of bank failure as long as you have less than the limit on deposit.

In the 1990s I had CDs at Imperial Savings and Home Fed. When they failed, the Resolution Trust Corporation came in and ran the banks until they found buyers for the assets. No big deal.

http://en.wikipedia.org/wiki/Resolution_...

I opened up a Countrywide CD
Submitted by CBad on November 12, 2007 - 5:09pm.

I opened up a Countrywide CD and savings account recently as well. I'm not worried about it.

Countrywide issues ratings
Submitted by The OC Scam on November 12, 2007 - 5:39pm.

Countrywide issues ratings warning
Countrywide Financial Corp. (CFC:Countrywide Financial Corp
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4:01pm 11/12/2007

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CFC 13.19, -0.64, -4.6%) warned in a securities filing that further cuts in its credit ratings to junk-bond levels could "severely" limit its ability to raise money in public debt markets and cause it to lose bank deposits.

Do you want to find out how long it takes for the FDIC insurance ot kick in?

Thanks kev374 for
Submitted by bub on November 13, 2007 - 11:26am.

Thanks kev374 for demonstrating the principle of Moral Hazard with a real world example.

Oh btw if Countryslide fails and you have to wait for it all to get sorted out don't make the mistake of posting about it here.

Is it safe? Unfrickin believable!

bub? what is your
Submitted by kev374 on November 13, 2007 - 1:02pm.

bub? what is your problem??

Moral Hazard is the Fed cutting interest rates and screwing over all the responsible people that depend on their savings holding it's value.

Savings at other places doesn't even earn enough interest to break even after inflation and taxes!

My problem is the American
Submitted by bub on November 13, 2007 - 1:25pm.

My problem is the American public willing to game the system anyway they can.

FDIC Insurance is the moral hazard in this particular case.

Would you even consider for a minute putting a dime in that pos bank if it were not for FDIC insurance?

No, but it is FDIC insured
Submitted by CBad on November 13, 2007 - 3:14pm.

No, but it is FDIC insured so what's your point? If banks weren't FDIC insured I'd use a safe in my house.

FYI, and how long did it
Submitted by CBad on November 13, 2007 - 3:47pm.

FYI, and how long did it take these people to get their money?

Historical Bank Failures from FDIC site

gaming the system? bub, are
Submitted by kev374 on November 13, 2007 - 4:24pm.

gaming the system? bub, are you serious??

The Fed is screwing with the markets and printing money to fuel ponzi schemes and entice people to take on more debt than they can afford so a select few on Wall St. can get rich...

who is gaming who here? Are you sure the system is not gaming the responsible American Public? Better wake up buddy!

Like I said before, I had
Submitted by patientlywaiting on November 13, 2007 - 4:44pm.

Like I said before, I had money in failed S&Ls in the 1990s. It's not a big deal. When there is a failure the receiver comes in and runs the bank like before without disruption. They then sells the assets of the bank with any short covered by the taxpayers.

Even if FDIC becomes insolvent, Congress will enact a bailout plan such as RTC to run and liquidate the banks. Just make sure that your funds are FDIC insured.

If we go the way of Argentina, then kiss the future of your kids goodbye. As far as I know, Tango and the night-life are still thriving in Buenos Aires. They are still having fun down there.

That link to the FDIC is
Submitted by akbarpunjabi on November 13, 2007 - 4:46pm.

That link to the FDIC is great. What would cause so many people to simply throw away money by having more than $100,000 in any single account? Did about 1500 people throw away around $36,000 just because they got too lazy to open up new accounts and transfer the money? I would have imagined people who banked online through NetBank would have been smarter.

What about deposits over
Submitted by markzuber on November 13, 2007 - 7:56pm.

What about deposits over $100,000. Can't you expand the FDIC insurance protection over the $100,000 limit by adding beneficiaries to your CD? Each of beneficiaries should be entitled to recover up to $100,000. Does anyone has any personal experience with deposits over $100,000?