Private investors recently have plowed money into other troubled institutions, like Synovus Financial, Sterling Financial and Pacific Capital Bancorp.".
Depositors demanded their money back.Times Topics "fdic", "New York Times May 20, 2010.Fdic insurance prevents widespread bank panics by maintaining confidence in the banking system.Morgan Chase bought WaMu on September 26, 2008, for.9 billion.WaMu's panicked depositors withdrew.7 billion from their accounts in just ten days.That was 10 percent of WaMu's deposits. .
"HBDs management pushed to grow loan production despite their awareness that a significant downturn in the market was imminent and despite warnings from IndyMacs upper best online casino no deposit bonus codes management about the likelihood of a market decline, the fdic said in its complaint." 31 "The Pasadena bank, known mostly.
They lend out the rest at a profitable interest rate.
Most of the time, banks only need to keep 10 percent on hand to keep their depositors' happy.It does not insure stocks, bonds, or mutual funds. .On March 6, three days after taking office, he closed all.S.9, about 140 banks failed in 2009, and bad credit, mortgage, and corporate loans continued to escalate in 2009.Eric Dash, "Private Investors Ease Strain on fdic Fund, "New York Times May 19, 2010.The fdic can draw up to 100 billion merely by asking, while the rest requires Treasury approval.In November 2009, United Commercial Bank of San Francisco failed, costing.S.Scott Reckard, "fdic Sues Former Executives at IndyMac, "Los Angeles Times July 12, 2010.18, as of early 2010, fdic have dealt with 240 bank failures since the financial crisis hit.Reuters, "Ex-regulators, bankers team up to buy failed banks Reuters February 26, 2010.
During the 2008 financial crisis, the fdic temporarily raised the upper limit to 250,000 per account (500,000 per joint account).