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Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
2 banking/investing questions
Posted by:
abarmont
()
Date: September 15, 2008 04:21AM
Hi, I have 2 banking questions:
1) If a bank "goes under", do you still have access to your safety deposit box?
2) Why was Bear Stearns rescued by the Fed and Lehman allowed to "die" (e.g. declare Bankruptcy?)
Thanks!
1) If a bank "goes under", do you still have access to your safety deposit box?
2) Why was Bear Stearns rescued by the Fed and Lehman allowed to "die" (e.g. declare Bankruptcy?)
Thanks!
Re: 2 banking/investing questions
Posted by:
Radiophile
()
Date: September 15, 2008 07:24AM
abarmont Wrote:
-------------------------------------------------------
> Hi, I have 2 banking questions:
>
> 1) If a bank "goes under", do you still have
> access to your safety deposit box?
Traditionaly, Feds sieze a bank on Friday and the bank is re-opened under Federal control (more too it actually, but this explanation is good enough for now) on the following Monday. Worst case scenario is you will not have access to your safety deposit box on Friday/Saturday but will on Monday.
> 2) Why was Bear Stearns rescued by the Fed and
> Lehman allowed to "die" (e.g. declare
> Bankruptcy?)
There are many reasons and more theories. Unless you were there, your theory is as good as mine.
> Thanks!
You are welcome.
-------------------------------------------------------
> Hi, I have 2 banking questions:
>
> 1) If a bank "goes under", do you still have
> access to your safety deposit box?
Traditionaly, Feds sieze a bank on Friday and the bank is re-opened under Federal control (more too it actually, but this explanation is good enough for now) on the following Monday. Worst case scenario is you will not have access to your safety deposit box on Friday/Saturday but will on Monday.
> 2) Why was Bear Stearns rescued by the Fed and
> Lehman allowed to "die" (e.g. declare
> Bankruptcy?)
There are many reasons and more theories. Unless you were there, your theory is as good as mine.
> Thanks!
You are welcome.
Re: 2 banking/investing questions
Posted by:
FUNdamental
()
Date: September 15, 2008 07:26AM
A) Any contents of your safe deposit box become bank assets; I heard McCain say Obama said that. McCain said he would fix that.
B) Ask Phil Gramm, he seems to be on top of this.
Also, BoA is buying Merrill Lynch; a commercial bank buying an investment bank-when has that ever worked out?
B) Ask Phil Gramm, he seems to be on top of this.
Also, BoA is buying Merrill Lynch; a commercial bank buying an investment bank-when has that ever worked out?
Re: 2 banking/investing questions
Posted by:
WashingToneLocian
()
Date: September 15, 2008 10:58AM
FUNdamental Wrote:
-------------------------------------------------------
.
>
> Also, BoA is buying Merrill Lynch; a commercial
> bank buying an investment bank-when has that ever
> worked out?
Citigroup. Oops, nevermind. You said "worked out," didn't you?
-------------------------------------------------------
.
>
> Also, BoA is buying Merrill Lynch; a commercial
> bank buying an investment bank-when has that ever
> worked out?
Citigroup. Oops, nevermind. You said "worked out," didn't you?
Re: 2 banking/investing questions
Posted by:
Errands
()
Date: September 15, 2008 06:58PM
Anyone up for a bank run? Wachovia is next.
That spot underneath my matress isn't looking all that bad after all.
That spot underneath my matress isn't looking all that bad after all.
Re: 2 banking/investing questions
Posted by:
abarmont
()
Date: September 15, 2008 09:07PM
Do people consider Bank of America the "safest" bank today?
Re: 2 banking/investing questions
Posted by:
Safe Harbor
()
Date: September 16, 2008 01:37PM
BofA is certainly safe given that they are the largest bank in America in terms of customer deposits. The only wildcard is how their exposure to the Countrywide acquisition will play out in the next year and the fact that no bank that thrives on retail banking as it's primary business would do taking over a bohemoth investment bank.
An even safer bank than BofA, believe it or not, is Wells Fargo.
An even safer bank than BofA, believe it or not, is Wells Fargo.
Re: 2 banking/investing questions
Posted by:
Edit from above
()
Date: September 16, 2008 01:40PM
Sorry, premature postulation.....
BofA is certainly safe given that they are the largest bank in America in terms of customer deposits. The only wildcard is how their exposure to the Countrywide acquisition will play out in the next year and the fact that no bank that thrives on retail banking as it's primary business has done well after taking over a bohemoth investment bank and it's assets. Merrill does have a great broker-dealer division, however, so they may just make history if it works.
An even safer bank than BofA, believe it or not, is Wells Fargo.
BofA is certainly safe given that they are the largest bank in America in terms of customer deposits. The only wildcard is how their exposure to the Countrywide acquisition will play out in the next year and the fact that no bank that thrives on retail banking as it's primary business has done well after taking over a bohemoth investment bank and it's assets. Merrill does have a great broker-dealer division, however, so they may just make history if it works.
An even safer bank than BofA, believe it or not, is Wells Fargo.