Move your money to small banks.

This could be another reason to move your money:
JANUARY 23, 2010

Executives Fret Over Bank Regulation

CEOs Say U.S. Financial System Reform Is Inevitable but Many Are Wary of Government Meddling

http://online.wsj.com/article/SB100...75019540389593812.html?mod=WSJ_article_MoreIn

JANUARY 23, 2010U.S. Plan Fuels Global Fire for Financial Regulation

By STEPHEN FIDLER, ALESSANDRA GALLONI And DAVE KANSAS

International efforts to regulate financial institutions gained renewed momentum Friday in the wake of the Obama administration's proposals to curb the size and spread of the biggest U.S. banks, leading regulators said Friday.
The U.S. moves, announced Thursday, are likely to make financial regulation one of the top items on the agenda at next week's gathering of world political and business leaders in Davos, Switzerland. The news hit bank stocks around the world Friday as investors concluded banks would face tougher government actions.
Until now, many investors had expected Washington to resist tough action on banks. Instead, the administration of President Barack Obama, responding to popular pressure, appeared to move into a leadership role with its proposals, jumpstarting a debate on global financial regulation that had begun to falter. [more]
http://online.wsj.com/article/SB100...3811230882.html?mod=WSJ_Markets_MIDDLETopNews
 
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Both the credit unions I use had a couple of `issues,' - whether that meant closer to danger zone or not, I don't know. The money goes `auto-out' timed to the `auto-in' so there isn't much to worry about - Yet. My car will be paid off this next week, THEN I'll have some money ! ! - to put into the house mtg .... Whoooah !!!:D
 
alevin said:
CB, I wonder where you were looking, US Bank OHio is there. I'm USB also for main accounts, not OH tho.
http://www.bankrate.com/rates/safe-sound/bank-ratings.aspx?t=cb&i=U.S.+Bank&r=&a=&c=&s=&z=97801

Decisions, decisions. All you can do is get as much info as possible and make best choices you can with what you know at the time.
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Thanks alevin,

I called my local US Bank branch, because I knew the HQ was in Cincy, but they told me the real HQ was in Minneapolis and went under the name of US Bancorp. That didn't sound quite right, but they fooled this Country bumpkin, :o. I'll have to tell Grandma, and tell her I've run outta feet to shoot.

Thanks for setting me straight, :D Just another reason to make a move to my Credit Union, since I already have a Savings acct there. I use that acct for drawing money for our online ROTH's.

Well your information has been a big help, I've been a little leery about the banks since all of this started. :worried:

CB
 
alevin said:
CB, I'm like you mostly. No debt, small Roth at a brokerage, I of course have bills every month-mostly utilities. My property taxes are paid up (I have to pay separately now the mortgage is paid off). I do have a non-interest savings account linked to my major checking account however-but those are not in any of the banks listed here.

I do have a small "non-interest" checking account (my FSAFEDS refunds get put into that account) and a moneymarket savings account (mma) still with BofA, which IS opting out end of this month. Having the MMA is what gets me my free checking account, that and the direct deposit FSA $, since my paycheck now goes to the other bank. The article above has a list of suggested action items at the bottom of the article if your bank is on one of the lists and you think you have accounts that may be vulnerable.

Basically FDIC is broke. If your accounts are going to only be covered by FDIC up to $250K, and not by one of the other programs at some point, the recommendation is to make sure you get the most critical payments from that account cleared before the coverage from the other programs ends. If your bank is at risk safety ratingwise, even if you are keeping less than $250K in the checking account, and FDIC has to take over the bank, it could mean a delay in a very important check clearing. Savings accounts may have no coverage at all if they don't earn a high enough interest rate.

Bankrate.com gives safety ratings for all banks and credit unions in the country, and explains their basis for the rating. My main accounts are at a 5star credit union (savings), and checking at a 4star regional bank that doesnt show up on any of these lists.

The savings account at the regional bank is linked to main checking and I am planning on closing that savings account, just to be on the safe side. soon. And I'm going to move my FSAFEDS link away from BofA to either the credit union or the regional bank checking account. The way I read these issues earlier, it was mainly small business checking accounts that could be at risk from loss of coverage from the other programs, but reading this article last night, I'm thinking why take the BofA risk? Inertia? not a good enough answer for me.
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Yeah alevin,

I read the article and it's suggestions and am already implementing those that are applicable. Also sent it to my daughter. Tht's what got me to thinking am I reading this right or not.

We're both in the same boat, with our existing bills and where our money is. I think I will look into moving my checking and savings to my Credit Union, since my bank is one of those that opted out the TAG Program. We're pulling alot of money from the checking and savings right now. Keeping just enough to cover our automatic withdrawal type bills.

Thanks for the idea of moving my FSAFEDS to my Credit Union 5*, I never thought about that re-imbursement income coming into my checking account. My bank us bancorp, didn't even show up at bankrate, regardless of the iterations I tried. That doesn't sound good.

Thanks for you comments, that's the feeling I got also, but it helps to have another opinion and I always listen to what you have to say, though we don't agree all the time.

Thanks for your response and suggestions :D

CB
 
CB, I'm like you mostly. No debt, small Roth at a brokerage, I of course have bills every month-mostly utilities. My property taxes are paid up (I have to pay separately now the mortgage is paid off). I do have a non-interest savings account linked to my major checking account however-but those are not in any of the banks listed here.

I do have a small "non-interest" checking account (my FSAFEDS refunds get put into that account) and a moneymarket savings account (mma) still with BofA, which IS opting out end of this month. Having the MMA is what gets me my free checking account, that and the direct deposit FSA $, since my paycheck now goes to the other bank. The article above has a list of suggested action items at the bottom of the article if your bank is on one of the lists and you think you have accounts that may be vulnerable.

Basically FDIC is broke. If your accounts are going to only be covered by FDIC up to $250K, and not by one of the other programs at some point, the recommendation is to make sure you get the most critical payments from that account cleared before the coverage from the other programs ends. If your bank is at risk safety ratingwise, even if you are keeping less than $250K in the checking account, and FDIC has to take over the bank, it could mean a delay in a very important check clearing. Savings accounts may have no coverage at all if they don't earn a high enough interest rate.

Bankrate.com gives safety ratings for all banks and credit unions in the country, and explains their basis for the rating. My main accounts are at a 5star credit union (savings), and checking at a 4star regional bank that doesnt show up on any of these lists.

The savings account at the regional bank is linked to main checking and I am planning on closing that savings account, just to be on the safe side. soon. And I'm going to move my FSAFEDS link away from BofA to either the credit union or the regional bank checking account. The way I read these issues earlier, it was mainly small business checking accounts that could be at risk from loss of coverage from the other programs, but reading this article last night, I'm thinking why take the BofA risk? Inertia? not a good enough answer for me.
 
alevin or anyone,

What does this mean to the economic illiterate? We have no bills, some cash at home, most of our savings is TSP, on-line ROTH's and small emergency savings at one of the TAG opt out banks.

It sounds like the FDIC is lowering the amt the will insure, but since they are broke, you might have to wait awhile to get your money back if your bank is not participating in these 2 programs. Is that the gist or am I missing something else.

I'm a survivalist and always try to prepare for the worst, Boy Scout, so what's the worst, the way you or anyone else will conjecture?
 
Everyone out there with a savings or checking account in a commercial bank needs to be paying attention to this, especially if you have a small business, but maybe for the personal accounts as well.

http://urbansurvival.com/week.htm

what will happen to the banking system in the USA after the first of January 1st. Transaction Guarantee Program (TGP) under the Temporary Liquidity Guarantee Program (TLGP):

Many banks, like this one at the other end of this here link, are participating in the TGP under the TGLP until June 30, 2010.​

The opt-out option is explained on the FDIC web site here,
after December 31, 2009, funds held in noninterest-bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee Program, but will be insured up to $250,000 under the FDIC’s general deposit insurance rules. FDIC definitions:
"A "noninterest-bearing transaction account" is defined as a transaction account with respect to which interest is neither accrued nor paid and on which the insured depository institution does not reserve the right to require advance notice of an intended withdrawal.​



This definition encompasses traditional demand deposit checking accounts that allow for an unlimited number of deposits and withdrawals at any time. This definition does not encompass interest-bearing money market deposit accounts (MMDAs).​


the FDIC is including in the definition of a noninterest-bearing transaction account:​

•Accounts commonly known as Interest on Lawyers Trust Accounts (IOLTAs) and functionally equivalent accounts; and​

•Negotiable Order of Withdrawal accounts (NOW accounts) with interest rates no higher than 0.50 percent for which the insured depository institution at which the account is held has committed to maintain the interest rate at or below 0.50 percent."​
Some banks have figured out that "free checking accounts" are presently covered by by the TLGP and if it's linked to a low/no-interest savings account, that low/no interest savings account would not be covered under TLGP if the bank opts out early.

Some banks are opting out early (by end of December 2009). Some are planning to stay covered by the TLGP until 30 June '10. From the FDIC website (linked here) we read:
[FONT=arial, helvetica, sans-serif]List of Institutions Opting Out of the Original Transaction Account Guarantee Program - Excel (Excel help)[/FONT]

[FONT=arial, helvetica, sans-serif]Any institution currently participating in the TAG Program that opted out will continue in the TAG program through December 31, 2009. [/FONT]

[FONT=arial, helvetica, sans-serif]List of Institutions Opting Out of the TAG Program Extension - Excel (Excel help)[/FONT]

[FONT=arial, helvetica, sans-serif]List of Eligible Entities that Opted Out of the Debt Guarantee Program - Excel (Excel help)[/FONT]
​
if you have a 'free checking' account that's considered covered presently by the TLGP and your bank is opting out early:
  • Do you move all your funds into an interest-bearing account (in which case, you would conceivably have to pay a monthly fee for checking services if you don't meet the continuing capital requirements of most interest-bearing checking accounts), or...​
  • Do you assume the (small, but nonzero) risk that goes with having FDIC insurance to $250,00 on the account as good enough if you're aware that "FDIC insurance fund closes quarter with $8.2 billion in debt"?​
While its a political certainty that FDIC will never be allowed to go broke, there's the little matter of timely settlement that concerns me. Since we presently use one of those non-interest bearing accounts that may not be covered after January 1, here's my personal strategy to deal with the matter....(list of action items provided in the original article at the link).
Click to expand...
 
wv-girl said:
If you have a low rate, it does not make sense to refiance. That justs spends more like you said. I am fighting back by paying extra on my mortgage to get it paid off sooner. Plus it reduces the amount of interest that is paid over the course of the loan. So, in a small way, I am fighting back, but on my terms. Once debt-free, they all can kma. You go girl! I got mine wrapped up last year. AND I've pulled down my account balance at BofA steadily since then, used to hold more than 20x what's in my account now. but transferred the direct deposits to 5-star regional bank so it's built up the cash holdings-ready for me to spend it down on major home improvs this winter and next summer-if the world doesn't tank before I get funds spent. Still dickering with heating and cooling company over last details before I sign on dotted line for major work this winter.

Also, have you checked into Everbank. You can hold your account in foreign currency.
:nuts:
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Now that I didn't know. Everbank, eh? I'm kinda interested in doing some currency diversifying with a bit of leftover savings that wouldn't be needed til next summer, but still studying up on FOREX haven't made much headway yet.
 
CIT Files Bankruptcy; U.S. Unlikely to Recoup Money (Update3)

By Tiffany Kary, Dawn McCarty and Lester Pimentel

Nov. 1 (Bloomberg) -- CIT Group Inc., a 101-year-old commercial lender, filed for bankruptcy to cut $10 billion in debt after the credit crunch dried up its funding and a U.S. bailout and debt exchange offer failed.

CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan. The U.S. Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.
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http://www.bloomberg.com/apps/news?pid=20601103&sid=a3.t_GrxbL2U

Can you feel the knife, twisting ever so slowly.
 
How about really screwing them over?

1. Move what you need for day to day living into a small, local bank.

2. Start investing in metals with your surplus earnings.
 
Here is an article on a local San Diego Bank...

To be honest, my link isn't fair and you seem a decent person...

Regardless, how much does Goldman Sachs owe the government?
My memory is that they did not want any bailout money.
Neither did JP Morgan/Chase and Wells Fargo.
Many small regional banks as well

They were 'forced' into taking bailout cash because the Treasury did not want an immediate run on the banks who 'elected' to accept the bailout. If your bank walked up to the bailout teller at the FED would you have stayed with it? Nope. Did the TARP funding end the bank runs? Yup. And, only half of the $750 Billion was expensed - with much of that going to dead ends like GM, Chrysler, and AIG (not banks). All the banks were asked to feed from the same trough. Kinda a Three Musketeers thing.

More than half of the TARP funds have been repayed with interest. How much of the $840 Billion in 'stimulus' money will be repaid? Where is the audit on that spending? Do we really want the 'Banking Queen' or 'The Hammer' managing our money supply, interest rates, and the strength of the dollar. Watch who screams when Bernanke starts raising interest rates next year. You can't do what's necessary when the FED is politicized.

It really is too bad about 'San Diego National Bank'. That mural is stunning amongst the concrete jungle of San Diego. You can see it from the I-5 freeway.
 
Bullitt said:
I got mortgage rates pretty low a few years back and am not about to enable the machine by refinancing to a little guy from the big guy so I can save $10 a month and fight the man. Oh, and I do have accounts at two credit unions, three major banks and one regional bank, so I guess I can say I've spread my risk.
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If you have a low rate, it does not make sense to refiance. That justs spends more like you said. I am fighting back by paying extra on my mortgage to get it paid off sooner. Plus it reduces the amount of interest that is paid over the course of the loan. So, in a small way, I am fighting back, but on my terms. Once debt-free, they all can kma.

Also, have you checked into Everbank. You can hold your account in foreign currency.
:nuts:
 
I have many problems with Goldman and among them being that this company was crying mother a year ago after facing a run on their funds. It's all ancient history now in our pathetic short term oriented society of who can beat the market on any given day.

Good luck with trying to get rid of the big banks but like it or not, without big banks, we're (humanity) finished. Small banks might be a few cogs on the wheel, but big banks are the wheel. The credit union isn't lending a line of credit to Goldman Sachs to drive their algorithmic trading units which is the only productivity (if you can call it that) left in America.

I got mortgage rates pretty low a few years back and am not about to enable the machine by refinancing to a little guy from the big guy so I can save $10 a month and fight the man. Oh, and I do have accounts at two credit unions, three major banks and one regional bank, so I guess I can say I've spread my risk.

We'll probably see more bank runs 5-10 years from now when baby boomers finally realize that a pension crisis is unavoidable.
 
The Treasury should have lent the money out directly to small businesses at the prime rate. Now that what I call stimulus.
 
Show-me said:
Are you as angry as I am about the monster mega banks taking billions in tax payer dollar so that they can in turn pay themselves millions in salaries and bonuses playing the market instead of loosening credit to small businesses and the consumer?

Are you as angry as me about all the fee's and charges the monster mega banks slip into a billing statement?

Well if you have a account with one of the "big banks" you are a enabler. You are voting with your business and wallet telling the big banks that it is OK to do what they are doing. Yes, you! Is it because you are complacent, don't care, like it, to busy, lazy?

Here is all you need to do.

1. Open a account at a "local" bank or credit union.

2. Transfer your money to the "local" bank or credit union.

3. Done.

If everyone does that it will send a clear message to them and the local businesses will most likely use the money for your community.

Quit making the monster mega banks rich. Quit enabling them, if you keep money there that is what you are doing.

Pass this on to everyone you know. The peoples voice is strong if we sing in unison.

Here is a good video clip.

http://www.businessinsider.com/dyla...goldman-exec-who-advocated-inequality-2009-10
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Show-me,
I agree and sent you a related PM.
Unfortunately, it likely will be the same ol' "too big to fail" scenario as before. :worried:
Very sad, but what you suggest may be the only thing the normal citizen can do about it.
(Still wish to hear the FED will be audited & immediately!)

Hope your fall from home's ceiling, that you're OK.
VR
 
Show-me

Show-me

Well-known member
Are you as angry as I am about the monster mega banks taking billions in tax payer dollar so that they can in turn pay themselves millions in salaries and bonuses playing the market instead of loosening credit to small businesses and the consumer?

Are you as angry as me about all the fee's and charges the monster mega banks slip into a billing statement?

Well if you have a account with one of the "big banks" you are a enabler. You are voting with your business and wallet telling the big banks that it is OK to do what they are doing. Yes, you! Is it because you are complacent, don't care, like it, to busy, lazy?

Here is all you need to do.

1. Open a account at a "local" bank or credit union.

2. Transfer your money to the "local" bank or credit union.

3. Done.

If everyone does that it will send a clear message to them and the local businesses will most likely use the money for your community.

Quit making the monster mega banks rich. Quit enabling them, if you keep money there that is what you are doing.

Pass this on to everyone you know. The peoples voice is strong if we sing in unison.

Here is a good video clip.

http://www.businessinsider.com/dyla...goldman-exec-who-advocated-inequality-2009-10
 
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