Breaking News: The FDIC is Broke!

[Shapecity]

From The Business Insider, Nov. 24, 2009:

The FDIC fund that insures bank deposits is $8.2 billion in the hole.

The Federal Deposit Insurance Corp. released its latest set of grim banking data moments ago. The FDIC had to set aside $21.7 billion for expected losses on future bank failures as the total number of "problem" banks rose to 552 from 416.

There were glimmers of hope. While bad loans continue to beat up bank balance sheets, revenues are returning to the banking sector. Overall, the banking sector was profitable after a $4.3 billion loss in the second quarter and saw just $879 million in earnings last year.

Source: The Business Insider

 

[Denny Crane]

Pretty amazing when they charge you $2.50 to withdraw $20 at an ATM (12.5% interest) yet pay you .5% interest on your savings account.

 

[Shapecity]

Move your savings to a bank in Australia. They're paying 5.00% to 5.25%

 

[Denny Crane]

Move your savings to a bank in Australia. They're paying 5.00% to 5.25%

So you earn in a year 7.5% less than they charge you in one transaction.

One of the most amazing things about banking, to me.

 

[MikeDC]

What's amazing about it?

 

[Denny Crane]

What's amazing about it?

That they profit so much and lose so much.

 

[Big Frame]

I dont know where you do your banking at Denny, but my Credit Union don't charge me to use the ATM

 

[Denny Crane]

I dont know where you do your banking at Denny, but my Credit Union don't charge me to use the ATM

Depends on the ATM, eh?

If you use a BofA ATM, BofA charges you something.

 

[MikeDC]

Sort of reinforces the idea that they're gambling, eh?

 

[Shapecity]

BofA charges you ATM fees even if you're a BofA customer? That's ridiculous. Why would you continue banking there? I don't use the ATM for savings account so I just park it in the Australian bank and earn the higher interest. If I need to transfer money to another account it's all done electronically without any fees charged.

 

[MikeDC]

Yeah, it's not like there's a shortage of banks that offer better deals on checking accounts. My bank actually rebates me back most of the money if I use a foreign ATM.