Submitted by OMG__Ponies t3_11n12mr in news
OMG__Ponies OP t1_jblbx9t wrote
Reply to comment by SsurebreC in Dow sheds 300 points as Friday’s key jobs report looms ahead: Live updates by OMG__Ponies
>How long does FDIC have to pay back money?
>In fact, there is no hard deadline, 99 years or otherwise. Instead, federal law requires the FDIC to make insured funds available to depositors "as soon as possible" after a seizure, and the FDIC typically does so by the next business day.
You've been through this I take it. When I went through a bank closure, it took 5 business days to receive my money. I guess your experience was much better than mine. Yes, in theory, our money is safe, but that's like saying the home we are living in is safe during an inferno if you have fire insurance. It’s not stress-free!
SsurebreC t1_jblfrfj wrote
> > the FDIC typically does so by the next business day.
Looks like you're an outlier. Still, waiting 5 business days isn't that long of a wait either. We used to simply be screwed if banks went under and there aren't many banks going under right now compared to a century ago.
[deleted] t1_jbm14c7 wrote
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SsurebreC t1_jbp0vgb wrote
Hey, not sure if you're still paying attention to this post but a bank just failed and FDIC said money will be available no later than Monday morning (i.e. one business day turnaround time). More info...
Again, your case could be an outlier but here's a real working situation that just happened to a pretty big bank with assets of over $200b.
OMG__Ponies OP t1_jbp1qct wrote
Actually my money is in other banks. I know it is probably an unfounded fear, but . . . people might panic, and when they see this bank close, they will run on their banks, causing a cascade effect.
EDIT, thanks for the heads up, I appreciate it.
SsurebreC t1_jbp2j4s wrote
That's exactly what happened and why FDIC was such a big deal when it created. Thankfully it hasn't been put to the test for any massive banks (ex: BofA). I'm glad your money is in other banks and safe though :]
Take care!
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