Everyone knows that your money is safe in an FDIC insured bank because if the bank fails (Hello, IndyMac!) the FDIC will step in and repay your money (generally, up to $100,000.) But what if the FDIC runs out of money? It doesn’t have an unlimited supply and enough bank failures could completely drain its fund, says ABCNews:
bank runs
If Enough Banks Fail, The FDIC Could Run Out Of Money
By 8.27.08
Help! How Can I Make Sure My Money Is Covered By The FDIC!?
By 7.17.08
The FDIC says there were over a billion dollars in assets at IndyMac that were not covered by the FDIC. Why not?
Banks Put 8-Week Hold On IndyMac Checks
By 7.17.08
People who got their money from IndyMac are facing new challenges as other banks put extended holds on releasing the funds when the checks are deposited. WaMu is putting 8-week holds on the checks. Wells Fargo is putting holds on amounts over $5,000. If you deposit more than that, Wells Fargo will only let you have access to the first $5,000. The Office of Thrift Supervision is looking into whether this is ok or not. Good, we needed something like this, that panic wasn’t looking frothy enough.
