what happens to my deposit if the bank goes bankrupt?

Discussion in 'Chit Chat' started by robinxing, Apr 8, 2010.

  1. I am not an American Citizen,so I wonder what would happen to my deposit if the bank goes bankrupt?
  2. What the hell does this have to do with trading.
  3. Contact the FDIC to retrieve your money.
  4. JackR


    One of two things happen:

    1) The FDIC arranges for another bank to take over all accounts at the failed bank. This is typically done on Friday night. On Monday the new bank is in place and you have an account with them.

    2) The FDIC has not been able to get any other bank to buy the failed bank. FDIC sends you a check for your funds.

    Understand that the FDIC only insures up to $250,000 (it may revert to $100,000 in 2014). Anything over $250K becomes part of the bankruptcy and how much you recover depends on the outcome of the bankruptcy. When you get the adjusted amount (if anything) is a function of the bankruptcy as well.

    If you have things like direct deposit and bill-paying in effect the first method generally keeps things going. The second method can create havoc for you.

  5. You say "the bank". Not all institutions are banks and not all institutions are FDIC insured.

    Ask your "bank" for info and verify it through third parties.
  6. What do large corporations with billions of dollars in deposits do if the bank goes out of business?
  7. Those non-intrest bearing corporate operating accounts have been (temporarily) insured by the Fed during the corruption (I mean crisis). Otherwise they are at risk unlike a citizen who would be insured up to the insurance limits.

    Also, corporate accounts are not protected from fraud like personal accounts are. If some crook gets ahold of some company's debit cards, the company looses all that money.
  8. What does almost any of the stuff on chit chat have to do with trading? LOL I thought that was kind of the point?:confused:

    Don't get me wrong, I'm not trying to sound rude. I was just saying.