muses of the moment

December 26, 2009

How do I know if my bank is safe?

Filed under: Bank bailout, FDIC, Safe banks, The Banking Crisis — totallygroovygirlfriday @ 12:23 pm

You don’t…..

It is very unfortunate that the US government is allowing banks to completely disregard general accounting rules and basically cook their books. It makes it very difficult to tell if your bank is next on the FDIC hatchet list. Even the professional investors can’t tell.

Here are the 3 lists I go by. I cross-reference these lists and make sure that only one (or none) of my bank accounts are on these lists. I make sure that all my bank accounts are covered by the FDIC. I make sure that all my personal and business money is in at least 3 different banks, so if one goes down, I have access to money to live or run a business. Three banks were closed, not bought on December 18, 2009. That means the depositors are waiting for a check from the FDIC for their money. I am sure that wait was short…for now.

Note: even though the big 5 banks that took bailout money are not on these lists does not make them safe. It is groovygirl’s opinion that one of the 5 will be set up as “the fall guy” in the next crisis and will be loaded with dud mortgages (commercial and residential) and imploded by the government. Right now, I would bet on Bank of America. Could be Citibank or Wells Fargo. It will not be JP Morgan or Goldman Sachs.

Bank list #1 from calculatedrisk. (I think the link is fixed, if not try the main website, click here.)

Bank list #2 from bankimplode-a-meter.

Bank list #3 from bankimplode-a-meter (by commercial real estate exposure only).

Banks loaded with commercial real estate will be very vulnerable in 2010.

FDIC failed bank list.

The FDIC has over 500 banks on their watch list currently, but they aren’t telling us who they are. You have to infer, which is what these lists are doing. It is highly likely that at some point in the next 4 years, these banks will close or be bought by another bank. The unofficial number of banks that should be on the list…..1000. The collapsing US banking system is a slow train wreck for the next 10 years. The only thing that the FDIC is doing is trying to control the implosion so as not to panic the public. At some point they will lose control of the situation.

The US banking system has completely changed (imploded) and no one made an announcement.

Side musing: if you would like to hold your money at a small local bank. Here is a great site with a search by zipcode.

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