What Does A Bank Run Look Like In 2008? A Lot Like 1912

via Consumerist by Meg Marco on 7/17/08

The FDIC was created in 1933 by the Glass-Steagall Act, and provides $100,000 of deposit insurance to checking and savings deposits. “Bank panics” used to be fairly common, and the FDIC was intended to instill confidence in the banking system after the Great Depression. The most recent big failure, that of California bank IndyMac, will cost the FDIC between $4 and $8 billion, and they estimate that about $1 billion of IndyMac’s deposits are “potentially uninsured,” meaning that the depositors had more than $100,000 on deposit. So what does a bank run look like these days?

Well, we took a peak at the Library of Congress’ photo collection and we realized that a bank run in 1912 looks a lot like a bank run in 2008, even though a much higher percentage of the modern day depositors will be leaving with smiles on their faces and their money in their pockets. Some things never change.

Photos: (Library of Congress, Run on East Side Bank, N.Y. 2/16/12)
(AP Photo/Kevork Djansezian)

Help! How Can I Make Sure My Money Is Covered By The FDIC!?

via Consumerist by Meg Marco on 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?

The FDIC says:

At the time of closing, IndyMac Bank, F.S.B. had about $1 billion of potentially uninsured deposits held by approximately 10,000 depositors. The FDIC will begin contacting customers with uninsured deposits to arrange an appointment with an FDIC claims agent on Monday. Customers can contact the FDIC for an appointment using the toll-free number above. The FDIC will pay uninsured depositors an advance dividend equal to 50 percent of the uninsured amount.

Does this sound like fun? No, it doesn’t. In order to prevent this from happening to you, we suggest you check out the FDIC’s Electronic Deposit Insurance Estimator (EDIE).

The FDIC says:

If you or your family has more than $100,000 at one insured institution, you can still be fully insured if your accounts meet certain requirements. You can use EDIE to determine your insurance coverage beyond the basic $100,000 amount.

Electronic Deposit Insurance Estimator (EDIE) [FDIC]