But they do not carry FDIC bank insurance and principal is at risk.
In fact, if you read the FDIC Failed Bank Information Sheet, it all seems rather unremarkable.
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If you happen to be a customer of a failed bank, the FDIC maintains a Failed Bank List with information on the acquiring bank, if applicable, and how your loans and accounts are affected.
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It appears that the FDIC is slowing bank failures even though their list of problem banks totals 775.
Among the issues that came up last year: The FDIC ordered the bank to stop operating with bad management practices.
Start-ups and other financial companies can quickly create FDIC-insured bank accounts, move money online and do payment processing using BancBox.
This has been happening several times a week here in the United States, as the FDIC shutters one bank after another.
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But if you have money in the safe instrument, a U.S. treasury bill or an FDIC - an FDIC-insured bank account, you're getting a very, very low return now.
Visa credit card and even owns an FDIC-insured bank.
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On top of all this, the FDIC and other bank regulators recently issued a policy statement declaring that banks, which hold about one-third of money market assets, should not "create an expectation that the bank will prop up" their own money market funds in the event of a breaking-the-buck incident.
"In consultation with the president, the secretary of the Treasury, on the recommendation of the Federal Reserve and FDIC, determined that open bank assistance was necessary to avoid serious adverse effects on economic conditions and financial stability, " FDIC chairwoman Sheila Bair said in statement.
Rather than taking over and running banks, the FDIC should split each bank into two parts.
These are banks that are being used by the FDIC as consolidators following Bank Failure Friday.
The FDIC incorrectly sees that bank failure will soon peak and that the DIF deficit is manageable.
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You can call toll free 1-877-ASK-FDIC or search the Bank Find database.
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Under the program announced this morning, the FDIC will insure new bank debt in the Temporary Liquidity Guarantee Program.
Its deposits are FDIC-insured against bank failures (not, of course, against currency losses).
Perhaps a threat to remove FDIC backing from a bank that is found guilty or pays a fine for illegal activity.
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The FDIC, like other bank regulators, has been encouraging banks to raise capital levels to buffer against the expected rise in losses and write-downs.
If they see something fishy on the books, they can shut down the firm the way the FDIC closes an insolvent bank over a weekend.
Any money the FDIC uses for a bank failure is charged against the current federal budget, regardless of whether money will be recovered down the road.
The FDIC closed only one bank last Friday bringing the total for 2010 to 109 failures still on track for my prediction that 150 to 200 banks will fail this year.
The Federal Deposit Insurance Corporation (FDIC), the bank regulator and receiver, inherits the right to sue bank directors and officers for losses, as well as their outside professional service providers, such as auditors, attorneys, and appraisers.
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With the FDIC in the bailout mix, was this bank one of the 775 on the FDIC List of Problem Banks?
That stance disagrees with the position the FDIC itself has taken in earlier litigation and would come as a shock to most bank depositors, who assume FDIC deposit insurance is backed by the full faith and credit of the government.
Last week the FDIC filed suit against Colonial Bank auditor PwC, and internal audit co-source vendor Crowe Horwath, for professional malpractice and breach of contract.
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If the FDIC investigation finds that the bank executives engaged in fraud in a misguided attempt to sustain the bank as a going concern, their activities, albeit wrongful, might still be judged within the scope of their employment because they did, at least for a time, confer a benefit on the bank.
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And the reason that's so important is because we don't know yet whether we're going to need additional money or how much additional money we'll need until we've seen how successful we are at restoring a sense of confidence in the marketplace, that the federal government and the Federal Reserve Bank and the FDIC, working in concert, know what they're doing.
This bank would accept only large deposits (above the FDIC limit), pay no interest, and hold only bank reserves as assets.
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When the now defunct Park Avenue Bank went south, the FDIC issued a press release that seemed to indicate that this was just another case of a failed bank.
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