Under the Emergency Economic Stabilization Act of 2008, more commonly known as the $700 bailout, the government promised to loan money to the nation’s banks to prevent Wall Street from completely crashing. The funds would be released in two $350 phases.
So far $161.5 billion has been given to banks. Another $108.5 billion has been applied for.
Who’s Got the Money?
So far, we know that AIG has been given some of the bailout money. Other banks include:
· Citigroup - $45 billion
· AIG - $40 billion
· JPMorgan Chase - $25 billion
· Wells Fargo - $25 billion
· Bank of America - $15 billion
· Goldman Sachs - $10 billion
· Merrill Lynch - $10 billion
· Morgan Stanley - $10 billion
· U.S. Bancorp - $6.6 billion
· Capital One - $3.5 billion
· Regions Financial - $3.5 billion
· SunTrust - $3.5 billion
Several smaller, more local banks have also received money. See a complete list of bailed-out banks at the New York Times.
Will consumers get a bailout?
The Federal Reserve announced a program that would assist banks in meeting consumer and small business needs. The Term Asset-Backed Securities Loan Facility would help banks issue consumer and small business loans including student loans, auto loans, credit card loans, and SBA loans. The Federal Reserve Bank of New York plans to lend $200 billion to this effort. Another $20 billion will come from the $700 billion bailout.
Showing posts with label bank failure. Show all posts
Showing posts with label bank failure. Show all posts
Friday, December 5, 2008
Tuesday, November 25, 2008
Should You Be Worried About a Bank Failure?
The FDIC reports a total of 21 bank failures in 2008, the highest number of failures in a single year since it began reporting closings in 2000. With the increased number of bank closings, it’s only natural to wonder if your bank is next. But predicting a bank failure isn’t so easy. The FDIC, Federal Deposit Insurance Corporation, compiles a list of problem banks on a quarterly basis. However, this obscure list isn’t released to the public. The corporation doesn’t want to alarm consumers which could make things worse. Even so, only 13% of the banks on the FDIC’s list actually fail, according to CNNMoney.com. So, it’s possible that you don’t have much to worry about.
If you want to know how your bank is doing, you can check any of the private bank rating companies published on a list by the FDIC.
For tips on How to Survive the Credit Crisis, click here.
Don’t worry unnecessarily about your bank failing. Instead, you should make sure the deposits you’ve made are FDIC-insured. The FDIC recently increased the insured amount to $250,000 per depositor per bank. This is a temporary amount that lasts until December 31, 2009 when the insured amount will go back to $100,000. Checking accounts, savings accounts, NOW accounts, money market deposit accounts, and CDs (certificates of deposit) are all insured up to the $250,000. Certain retirement accounts are also covered.
These types of accounts are not covered: life insurance policies, annuities, stocks, bonds, mutual funds, or municipal securities.
You may be covered for more than $250,000 at a single bank if you have money deposited in different ownership categories: single accounts, certain retirement accounts, joint accounts, or revocable trust accounts. Visit FDIC.gov for more information on insurance levels and to find out if your bank is insured.
If you want to know how your bank is doing, you can check any of the private bank rating companies published on a list by the FDIC.
For tips on How to Survive the Credit Crisis, click here.
Don’t worry unnecessarily about your bank failing. Instead, you should make sure the deposits you’ve made are FDIC-insured. The FDIC recently increased the insured amount to $250,000 per depositor per bank. This is a temporary amount that lasts until December 31, 2009 when the insured amount will go back to $100,000. Checking accounts, savings accounts, NOW accounts, money market deposit accounts, and CDs (certificates of deposit) are all insured up to the $250,000. Certain retirement accounts are also covered.
These types of accounts are not covered: life insurance policies, annuities, stocks, bonds, mutual funds, or municipal securities.
You may be covered for more than $250,000 at a single bank if you have money deposited in different ownership categories: single accounts, certain retirement accounts, joint accounts, or revocable trust accounts. Visit FDIC.gov for more information on insurance levels and to find out if your bank is insured.
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