What does this mean?

[tamilee]

I have a quick question about something I know very little about. I was checking a bank statement online and I noticed in the upper right corner a small box and written inside was the statement:


"We are no longer participating in the FDIC program."

I have NOT received a paper notice of this. There is no other information on the bank's website about why.

Does this mean that the bank is about to close or is struggling to remain solvent?

They were FDIC insured when I began dealing with them.
I have NEVER heard of this sort of thing happening or being handled this way.

Thanks.
tamilee

[brewswain]

FACT:
the FDIC does not have the money to meet its obligations

[tamilee]

Oh my. So the deposits at my bank are NOT insured? The FDIC itself is insolvent?

[Beeman]

http://www.fdic.gov/regulations/reso...gp/optout.html
This might be it. They might not be participating in the $250k deal.

[MN Gardener]

Is this a local bank? What type of account is it?

[tamilee]

Thanks Beeman.

[tamilee]

Originally Posted by MN Gardener

Is this a local bank? What type of account is it?

It's NOT local. It is a major bank in NYC.

[Alice In TX/MO]

I'd sure call them on Monday!

[snoozy]

Originally Posted by tamilee

It's NOT local. It is a major bank in NYC.

Care to let others know which major bank so they can get their money out? Or at least make an informed decision about whether they want to leave their money in it or not.

[tamilee]

Originally Posted by snoozy

Care to let others know which major bank so they can get their money out? Or at least make an informed decision about whether they want to leave their money in it or not.

Log in to the banks website. If your bank has opted out of the FDIC program they will have a statement declaring this on their homepage.

[seedspreader]

Chase. Possibly Citibank.

[Sheripoms]

From what I have read I think it is just for deposits over 250,000 that will not be insured.
But I am not 100% on that.

[edcopp]

Is this some kind of a surprise? I have been long convinced that the world bankers tell the United States government what to do. When and how to do it. Basically they are one and the same.

I don't really think that their puppet corp., the FDIC is ever going to pay anybody anything, obligated or not.

Do you still trust these people? Really?

[tamilee]

Originally Posted by edcopp

Is this some kind of a surprise? I have been long convinced that the world bankers tell the United States government what to do. When and how to do it. Basically they are one and the same.

I don't really think that their puppet corp., the FDIC is ever going to pay anybody anything, obligated or not.

Do you still trust these people? Really?

Well, I did up until now. I thought banks of integrity would always participate in the FDIC program. The fact that a bank participated was a plus for depositing money in that bank. I always considered it a way of illiciting trust from prospective depositors. It never occured to me that a bank would ever be allowed to opt out. I don't trust that particular bank any more. I'm a bit leary of all the others now.

[Bearfootfarm]

http://www.fdic.gov/deposit/difaq.html

The standard insurance amount of $250,000 per depositor is in effect through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except IRAs and other certain retirement accounts, which will remain at $250,000 per depositor.

Q. How can I find information about my bank? I would like to know if there is a branch of my bank that is close to my house. How can I file a complaint about my bank?
A. FDIC Bank Find( http://www2.fdic.gov/idasp/main_bankfind.asp ) allows you to locate detailed information regarding a single FDIC-insured institution. This information includes answers to questions such as: Is my bank insured? Where are my bank's branches located? Where is my bank's home (main) office located? What is my bank's Web site address? What happened to my bank? Does my bank have a new name? Is my bank still open? Who do I contact with a complaint?

[Shepherd]

Interesting. So are you going to switch banks?

[tamilee]

Not sure. If a major bank has OPTED OUT of the FDIC program then where does that leave the smaller financial institutions? Are they more or less secure? Is ANY bank a safe place to put money? FDIC participation was the backbone of a bank. Without FDIC guarantee of the safety of depositor's money a prudent person would NOT deposit money in that bank. I reiterate, is a smaller institution any more secure if the FDIC itself is insolvent?

[Deacon Mike]

Originally Posted by tamilee

Oh my. So the deposits at my bank are NOT insured? The FDIC itself is insolvent?

What Bank?

It's irrelevant if the FDIC has money or not

[Pink_Carnation]

Originally Posted by tamilee

Not sure. If a major bank has OPTED OUT of the FDIC program then where does that leave the smaller financial institutions? Are they more or less secure? Is ANY bank a safe place to put money? FDIC participation was the backbone of a bank. Without FDIC guarantee of the safety of depositor's money a prudent person would NOT deposit money in that bank. I reiterate, is a smaller institution any more secure if the FDIC itself is insolvent?

Some smaller banks will be in much better shape and some won't. It really all depends on lending practices and the number of defaults.

[danielsumner]

I got a letter from one of my banks. It seems that after this last banking fiasco, they rasied the limit on insured accounts to 250,000 from 100,000. My bank said they were going back to the 100,000 limit. Sure wish I had to worry about this.

Daniel