True...but I guess my assumption is that the majority of people that have over the FDIC limit in cash would have spread the cash around to different banks....I can't think of a more boneheaded move than to have over the FDIC limit money in any single bank this late in the game after all the failures we've seen.....
Not a good idea to have uninsured money at ANY institution at the present time, but if I had less than $250K at Citi I wouldn't lose a second of sleep over it. Also, look at AIG, if the government is willing to go as far as it has for AIG I don't expect anything less for Citi. If you are a still a shareholder at this point then frankly you deserve to lose your money but insured depositors and even bondholders need not worry.
And probably the majority of people on this board don't have more than 250k of cash anyway : ) I know I dont!
A sudden blitz of reassurance advertising is frequently a prelude to bankruptcy. Example: Refco.............................
so uhm hypothetically, if you did max them out and citi DID go under, that would mean what exactly?? if the bank gets taken over, don't you still have to pay back the loans/credit card balances to the bank lol??? (not making fun, i really want to know cuz i have citi credit cards : )
Either a new bank takes over or the reciever would sell the debt to a distressed asset /debt collector [who now does not have to worry about a Bank being fusy about its image.]
Trying to work from memory, but thought that Citi has 770 billion in deposits and FDIC has 51 billion in ready cash. In any case, I believe Citi outsizes FDIC.