Bank Solvency and FDIC Worries

[bsrsharma]

cashman,

Being in a somewhat similar situation, I am planning to place all my cash in FDIC insured accounts with highest returns possible in multiple institutions (i.e. not exceeding $100K at a place). After the last weeks BNP Paribas news, I am sceptical about earning reports etc., I suspect most institutions have exposure to real estate, especially residential kind. Also, HELOC, credit card debt will all be impacted by real estate defaults. I saw S & L crisis from up close and if there is one thing I learnt, it is how irrational asset valuations can be.

[Anonymous]

I just saw an article that listed European banks that are exposed to the subprime mortage. One of them was Ing. It has 3.2 euro billions invested in subprime mortages through the ABS or 25% of its investments. Do you think this is still a safe bank?? I just transferred my savings to them. May have to look into a credit union!!

I like the National Mortgages News Online website. It lists the top ten subprime lenders’ sales volume on a quarterly basis. Also does a year over year comparison.

[Anonymous]

I just saw an article that listed European banks that are exposed to the subprime mortage. One of them was Ing. It has 3.2 euro billions invested in subprime mortages through the ABS or 25% of its investments. Do you think this is still a safe bank?? I just transferred my savings to them. May have to look into a credit union!!

I like the National Mortgages News Online website. It lists the top ten subprime lenders’ sales volume on a quarterly basis. Also does a year over year comparison.

[Anonymous]

I just saw an article that listed European banks that are exposed to the subprime mortage. One of them was Ing. It has 3.2 euro billions invested in subprime mortages through the ABS or 25% of its investments. Do you think this is still a safe bank?? I just transferred my savings to them. May have to look into a credit union!!

I like the National Mortgages News Online website. It lists the top ten subprime lenders’ sales volume on a quarterly basis. Also does a year over year comparison.

[condogrrl]

I am VERY conservative (and probably a bit paranoid). I deal directly with the Federal Reserve Bank and have for years. Right now 6 month t-bills are paying a little less than bank CDs (even considering no CA income tax on the interest) but I can keep all my cash in one place and keep reinvesting it. I just space it out evenly across the year and each month the interest is deposited directly into my checking account. I’m retired so it adds to my other monthly income of pension, social security and an annuity payment. Of course, I have a local checking account and a small savings account (about $40K) at Washington Mutual paying 5%. I sleep well each night.

[condogrrl]

I am VERY conservative (and probably a bit paranoid). I deal directly with the Federal Reserve Bank and have for years. Right now 6 month t-bills are paying a little less than bank CDs (even considering no CA income tax on the interest) but I can keep all my cash in one place and keep reinvesting it. I just space it out evenly across the year and each month the interest is deposited directly into my checking account. I’m retired so it adds to my other monthly income of pension, social security and an annuity payment. Of course, I have a local checking account and a small savings account (about $40K) at Washington Mutual paying 5%. I sleep well each night.

[condogrrl]

I am VERY conservative (and probably a bit paranoid). I deal directly with the Federal Reserve Bank and have for years. Right now 6 month t-bills are paying a little less than bank CDs (even considering no CA income tax on the interest) but I can keep all my cash in one place and keep reinvesting it. I just space it out evenly across the year and each month the interest is deposited directly into my checking account. I’m retired so it adds to my other monthly income of pension, social security and an annuity payment. Of course, I have a local checking account and a small savings account (about $40K) at Washington Mutual paying 5%. I sleep well each night.

[waiting hawk]

“small savings account (about $40K) at Washington Mutual paying 5%”

Might want to stay up a bit longer at night.

“Washington Mutual warns on subprime pressures”

“Due to the conditions roiling the subprime sector, “the companys liquidity may be affected by an inability to access the capital markets or by unforeseen demands on cash.

“This situation may arise due to circumstances beyond the companys control, such as a general market disruption,” the bank said.”

http://rawstory.com/news/afp/Washington_Mutual_warns_on_subprime_08102007.html

[waiting hawk]

“small savings account (about $40K) at Washington Mutual paying 5%”

Might want to stay up a bit longer at night.

“Washington Mutual warns on subprime pressures”

“Due to the conditions roiling the subprime sector, “the companys liquidity may be affected by an inability to access the capital markets or by unforeseen demands on cash.

“This situation may arise due to circumstances beyond the companys control, such as a general market disruption,” the bank said.”

http://rawstory.com/news/afp/Washington_Mutual_warns_on_subprime_08102007.html

[waiting hawk]

“small savings account (about $40K) at Washington Mutual paying 5%”

Might want to stay up a bit longer at night.

“Washington Mutual warns on subprime pressures”

“Due to the conditions roiling the subprime sector, “the companys liquidity may be affected by an inability to access the capital markets or by unforeseen demands on cash.

“This situation may arise due to circumstances beyond the companys control, such as a general market disruption,” the bank said.”

http://rawstory.com/news/afp/Washington_Mutual_warns_on_subprime_08102007.html

[bsrsharma]

Might want to stay up a bit longer at night

No need as it is FDIC insured. Just make sure it is a Savings Account and not some High Yield Money Market Account.

[bsrsharma]

Might want to stay up a bit longer at night

No need as it is FDIC insured. Just make sure it is a Savings Account and not some High Yield Money Market Account.

[bsrsharma]

Might want to stay up a bit longer at night

No need as it is FDIC insured. Just make sure it is a Savings Account and not some High Yield Money Market Account.

[condogrrl]

Thanks for the advice, waiting hawk. I am somewhat aware of this, but I need checking and savings accounts somewhere locally. Where do you suggest? 40K, for me, is not that much, although I’m not fond of losing money…

[condogrrl]

Thanks for the advice, waiting hawk. I am somewhat aware of this, but I need checking and savings accounts somewhere locally. Where do you suggest? 40K, for me, is not that much, although I’m not fond of losing money…

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