FDIC insurance........reliable or not?

[TheMetetron]

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Who the hell keeps more than $100k in cash equivalents?

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a lot of people

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Any non-retards?

I can't imagine keeping money in cash equivalents that you don't need immediate access to. I guess someone could need immediate access to that much but if thats the case I doubt they are worried about whether or not the $100k out of their millions is going to be insured or not.

As has been said, if FDIC isn't paying out, we are all [censored] anyway.

[Uglyowl]

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I can't imagine keeping money in cash equivalents that you don't need immediate access to.

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Not everyone is in their 20's and 30's... Senior citizens make up a large portion of jumbo deposits. Also $100k is just a drop in the bucket to others.



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Until you can provide something more certain than that. I'm going to continue to laugh.

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I guess you haven't read much about bank failures and the liquidation process before. Here is a good article about one of this decades largest:

http://www.inthesetimes.com/article/breaking_the_bank/

Further, FDIC specifically mentions losses due to uninsured funds:

http://www.fdic.gov/consumers/consum...0/pg8stry.html

[Uglyowl]

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Thremp, did you read the article? Generally 75% recovery on uninsured funds historically has been the norm, but sometimes it is much lower depending how bad the bank's balance sheet is.

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So recovery is exactly what people get back in hand? I took it to mean that is what the FDIC makes after they liquidate the bank and they usually make the difference up in every case. Until you can provide something more certain than that. I'm going to continue to laugh.

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Search around for Netbank's stories on the internet about them going belly up, the attached story is one of many. Ignore the FDIC insurance rules at your own peril.

http://money.cnn.com/2007/09/29/smbu...ney_topstories